George Clason, in his classic book titled “The Richest Man in Babylon,” wrote this line: “A part of all I earned was mine to keep.” In the 1950s, a lawyer named Louis Kelso coined the term “Employee Stock Ownership Plan” (ESOP). The intent of ESOPs is to significantly increase employee incentives and productivity, while giving
In early 2000, Michael and Lynn Terry started a business selling horse trailers that were lighter than their competitors’ and customized to each client’s needs. Nearly two decades later, their company, Cimarron Trailers, with tens of millions of dollars in sales, employed over 130 people in Chickasha, Okla., and their trailers were sold
Executive search firm Armstrong Craven, headquartered in Manchester, U.K., has become a majority employee-owned business. The firm will continue to be led by joint managing directors Rachel Davis and Peter Howarth. “We have long believed that the well-known benefits of employee ownership, when combined with our extremely dedicated team, will be a recipe for success,
DeBlois Electric Inc. announced Monday that the company is now 100% employee owned through an employee stock ownership plan. The announcement signals the beginning of a new ownership structure that will continue to operate with the same vision and leadership previously established.
The privately held company was started by Willie and Gaetane DeBlois in 1967, and
Employee ownership has too long been overlooked as a win-win solution for businesses and workers alike. That’s the view of Bill Young, founder and president of the Toronto-based Social Capital Partners.
That’s because employee-owned businesses offer “a proven wealth-creating vehicle” for individual employees; long-term wealth can be more resilient than income,
In all the urgency of the pandemic and the economy’s re-opening, it is easy to ignore what other policies are going into place. But the fact is that much else is happening. As part of those non-pandemic measures, this White House seems determined to broaden corporate ownership throughout the middle class.
A first sign of this effort
Columbus entrepreneurs Todd Kaufman and Justin Searls sold their rapidly growing software consulting agency Test Double to their employees in April. They converted to an employee stock ownership plan, which cost employees nothing, allowed Kaufman and Searls to remain at the helm and positioned the company for accelerated growth over the next several years.
If your company is not sharing ownership widely with employees, it should. Don’t take my word for it. Billionaire entrepreneur Mark Cuban put it well in a recent LinkedIn interview:
Said Cuban: “If you’re running a company and you need help from your employees, give them equity. Give them stock in
Employee Stock Purchase Plans (ESPPs) provide significant opportunities for America’s working class to build wealth. These plans are purpose-built to help employees achieve greater financial security through company stock ownership. They were created in 1964—fourteen years before the creation of 401(k) plans—as a method to make stock ownership more accessible, yet today they remain heavily
If American retirement security is a quilt constructed of employer-sponsored retirement plans, then the pandemic is moth larvae. Financial distress caused by the coronavirus has made it necessary for out-of-work Americans to spend their savings and shuttered companies to cut costs to survive. Workplace retirement plans have been a source of savings and a target
The police killing of George Floyd has brought new awareness of systemic racism. Business leaders serious about ending racism need to look beyond forming a diversity, equity and inclusion committee or adding black faces to the C-suite. They must dive into the heart of racial
“Treat employees like they make a difference and they will.” Jim Goodnight, CEO SAS
Why consider employee ownership?
Think about the first time you applied for a job or interviewed someone for a job. The conversation probably did not include a discussion of who owned the company. For public companies, this is not surprising, because employees may
On March 27, 2020, President Trump signed into law a massive $2 trillion stimulus bill, the Coronavirus Aid, Relief, and Economic Security Act (the CARES Act or the Act), aimed at shoring up the U.S. economy in light of the disruption caused by the coronavirus pandemic. In addition to the widely discussed individual stimulus payments,
It’s debate watch party night at Democracy Brewing in February, and as presidential candidates take the stage to sports-star hype introductions, the politics fans at this European-style beer hall are getting rowdy, like Patriots fans when Tom Brady takes the field. The biggest cheers come from two waiters when they see Bernie
he ESOP Association is pleased that employee ownership arose in the Democratic party Presidential debate last night and that multiple candidates were able to vocalize their support. We believe more Americans need to know about and participate in employee ownership—especially ESOPs, which are the largest and most common form of employee ownership—and would encourage greater
SCS Engineers, a leading national environmental consulting and construction firm, recently achieved a significant milestone when it completed a transaction to become 100% employee-owned through its employee stock ownership plan (ESOP).
SCS Engineers established its ESOP in 1986, and recently purchased a small number of outstanding shares from minority shareholders, achieving 100% ownership through the ESOP
There are a lot of myths and mysteries that surround employee stock ownership plans (ESOPs) and some of these misconceptions can scare landscape company owners away from considering this business option.
Make no mistake, some ESOP structures are complex, but they don’t have to be intimidating. Here are the basics of what an ESOP
Over the past 30 years of my career in startups, I have assumed the role of an investor, employee, executive and board member — all of which have been incentivized and compensated by varying levels of private company stock and options. This has provided me with incredible insights into the complexities of stock and
For many entrepreneurs, the ultimate goal is to take their company public. But for fashion designer Eileen Fisher, staying private and giving her employees a share of the business has allowed her to carve her own path to success.
Fisher personally owns 60% of the company that shares her name, while the remaining 40% is held