Employee Ownership

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When Should an Employer Consider an ESOP?

Employee Stock Ownership Plans (ESOPs) are popular both with owners looking for ways to increase employee engagement and involvement and with employees seeking to have some ownership in and benefit from the work they do beyond their salaries. For business owners, considering implementing an ESOP is one of many options they consider when looking at

Toward an Economic Democracy

The most fundamental tragedy of the coronavirus crisis is human. It is lives being lost. Somewhere close behind is the feeling of desperation shared by working people. In an economy where it is estimated that 50 percent of the labor force survives from paycheck to paycheck, we are facing an economic crisis of unprecedented proportions

Employee Owned Publix to hire ‘thousands’ amid disease spread

Publix announced Friday that it wants to hire “thousands” of new employees this month amid the coronavirus pandemic. The positions would be in stores and distribution centers and come as demand is increasing as coronavirus spreads. “We take pride in serving our communities during times of need, and with the unprecedented demand we are experiencing,

How Boston Is Becoming the City Where Workers Rule

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 Sanders—the candidate who

Georgia Theatre Company Transitions to 100% Employee Ownership

It’s the ultimate bonus: Georgia Theatre Company (GTC), the 18th-largest theater circuit in North America, has rewarded the diligence and dedication of its roughly 700 employees by making them the owners of the company. This apparently unprecedented action by a movie-exhibition chain is made possible by the creation of an employee stock ownership plan (ESOP),

This Acquisition Won’t Hang Workers Out to Dry

Brett Jones plans to arrange at least sixteen acquisitions over the next five years. He just closed on the first one. Since they became widespread among private equity firms in the 1980s, acquisition strategies, including leveraged buyouts, have become a key part of the playbook leading to the demise of many iconic U.S. companies —

When staff run the show: the true benefits of employee ownership

The moment when staff at John Lewis and Waitrose are told the size of their bonus is always much-anticipated. This week’s announcement will be no different, except in one respect – staff will probably be handed a fraction of the usual 10% to 18% of salary. Last year it was 3%, this year it could

How early employees get ownership in startups

When looking at a job description, it’s often the salary that stands out. But the total compensation is a trickier puzzle to put together, with elements that might not be visible week-to-week, or in a single check. For one, there’s the total benefits package to consider, including health insurance, vacation days, retirement and more. Another

AVEKA group announces formation of ESOP

AVEKA Group, Inc., a contract manufacturing and research and development company based out of Woodbury, MN with a plant facility located in northeast Waukon, has announced that the company has become an S Corporation ESOP (employee stock ownership plan), effective October 15, 2019. In the transaction, prior investors sold 100% of their ownership interest to

ESOP Association Statement Regarding Employee Ownership in Democratic Debate

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

Midland Trust Announces the Formation of an Employee Stock Ownership Plan

Midland Financial Corp., a Florida holding company for Midland IRA Inc. and Midland Trust Company, has become an employee-owned company effective January 29, 2020. Midland sold 25% of its ownership interest to a newly created Employee Stock Ownership Trust, allowing current and future employees to gain a beneficial ownership interest in the company. This was made

SCS Engineers Becomes 100% ESOP Owned

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

U.S. House Small Business Committee Holds Hearing on ESOPs

During a Congressional Hearing held today by the U.S. House Small Business Committee, ESOP Association member Daniel Goldstein, President and CEO of Cedar Rapids based Folience, gave testimony and answered questions regarding the Challenges and Benefits of Employee-owned Small Businesses. Goldstein, a member of TEA's Board of Governors and testifying on behalf of The Association, emphasized the

Retiring Boomer Business Owners Turn to Worker Co-ops to Preserve Legacy

Worker co-ops are “an idea with growing appeal for small-business owners,” observes Karen Angle in Bloomberg Businessweek. Angle adds that according to data from the US Federation of Worker Cooperatives, the US now has about 800 worker-owned co-ops—still a small number, but more than double the 350 that existed a decade ago. These worker co-ops now employ

Business bests: Employee stock ownership plans explained

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 is, its benefits

Cornerstone Systems announces 100 percent employee owned

Memphis-based third-party logistics provider, Cornerstone Systems, Inc. announced that it is now a 100 percent employee owned company as Founder/Chairman Rick Rodell sold his last 51 percent. In 2013, Cornerstone officially became an ESOP when Rodell sold 49 percent of his shares to the newly created ESOP. “When you’re 49% ESOP, you’re in deep,” President/CEO

metroConnections Becomes 100% Employee Owned

metroConnections leadership is proud to share that the company has formed an Employee Stock Ownership Plan (ESOP) as of January 1, 2020, and in doing so, has made every metroConnections employee a critical business stakeholder. The ownership transition is a further commitment to metro’s customers, as the employee ownership further cements its reputation of being

Another large Columbus company is now owned by its employees

GreenScapes Landscape Company Inc. is the latest in a line of Columbus companies to transition to employee ownership. The landscaping company has transitioned to an employee stock ownership plan, or ESOP, placing control in the hands of its 90 employees, a succession plan initiated by founder Bill Gerhardt. Since opening in 1977, the company has

Kovatch Castings embraces ESOP to preserve company culture, family legacy

When Doug Kovatch began to ponder retirement a few years back, he found himself in a position not uncommon among many of today's leaders of family businesses. Kovatch, now 62, had been president at Kovatch Castings Inc., a Uniontown manufacturer started by his father in 1976, for more than 40 years. The second-generation owner was ready

Loftness in Hector becomes employee-owned

Loftness Specialized Equipment Inc. based in Hector, MN has joined an employee stock ownership plan. Through this change, the manufacturer of agricultural and vegetation management equipment is now 100 percent employee-owned. “Our employees, as well as the entire community of Hector, mean very much to us so we’re excited to present them with this new