ESOPS

Honoring the dignity of employees includes having them own more of the company

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

Wage Economy vs. Employee Ownership

A few years ago, a meeting of global business leaders took place in London, England. Titled the Conference on Inclusive Capitalism, the event focused on addressing a critical flaw in the current application of capitalism: rising inequality in a wage economy.

In the end, the meeting itself did little more than promote discussion; however, it still

2020-07-26T04:02:03-05:00

Employee Stock Ownership Plans and Their Effect on Productivity: The Case of Huawei

Employee Stock Ownership Plans (ESOPs) are utilized by many successful companies across the world. This case study describes Huawei, a Chinese telecommunications equipment company, which heavily utilizes ESOP ownership, and applies Huawei’s results to describe ESOPs as a powerful tool for achieving corporate efficiency and growth. Using and analysis of Huawei’s annual reports, we argue

Coronavirus concerns for ESOPs and ESOP auditors

The coronavirus pandemic has presented new challenges to virtually every company and individual in every discipline in the current economy.

Employee stock ownership plans (ESOPs) and their plan sponsors — as well as auditors of the plans — certainly will have new issues to consider as a result of the pandemic.

Today most ESOP companies are S

CARES Act Provisions of Related ESOP-Owned Companies

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,

Make Your ESOP Work for YOU

Congratulations. You’ve completed your paperwork, met the Department of Labor criteria and successfully established your employee stock ownership plan (it took a while, didn’t it?).

You’re now half the way there. In order to perform better and reap the clear benefits an ESOP can generate, you must couple employee ownership with employee engagement.

It starts with you.

ESOPs More Valuable Than Just a Retirement Savings Vehicle

Studies have shown that companies that sponsor employee stock ownership plans (ESOPs) see positive results for revenue and employee productivity, but more recent studies show ESOPs provide greater retirement savings for employees and can reduce wealth inequality.

Loren Rodgers, executive director of the National Center for Employee Ownership (NCEO) in San Francisco, says,

Ohio’s first ESOP was just the beginning

Alloy Engineering, founded in 1943 in a Rocky River home, fabricates alloy parts for high-temperature and corrosive-resistant industrial applications. It also boasts Ohio’s first Employee Stock Ownership Plan, or ESOP, established in 1974. The plan is recognized as the first for an Ohio company by the Ohio Employee Ownership Center (OEOC). At 45 years

2019-05-27T07:15:36-05:00

Series A stage startups give more weightage to ESOPs to retain talent

The element of talent plays a critical role in the growth trajectory of startups, and companies are increasingly leveraging the tool of Employee Stock Ownership Plan (ESOPs) to retain the best of their employees.

A study by Trifecta Capital, a venture debt firm, says more than 50 percent of Series A startups have an ESOP pool

Before Selling Your Business You Should Consider An ESOP

In its simplest terms, an employee stock ownership plan (ESOP), is a qualified defined-contribution benefit plan comprised of company stock, held by shareholders at a company (which is usually all vested employees). An ESOP is a way to sell your company to your employees, enabling all employees to become shareholders in the company, and selling

Income inequality, financial crisis and the rise of Europe’s far right

Destinations by Design (DBD), a provider of high-quality destination management and event services to the incentive and corporate markets in Las Vegas for 28 years, has announced that effective November 5, 2018, the company’s stock has been sold to its employees through an Employee Stock Ownership Plan (ESOP).

Representing a tangible way to reward those who have played

Company credits growth to ESOP structure

Established in 1960 by Gordon “Buck” Horbuck and his wife, Ira, B&I Contracting began the transition into an employee-owned company in 1986. It completed it in 1991.

The move to what’s commonly referred to as an ESOP, at least based on share price, has been nothing short of remarkable: privately-held shares of the company are now worth nearly

5 things to know about buying a company with an ESOP

One of the management team members let out a gasp. Two others shook their heads in disbelief and angst. The senior leader on their team had just informed them that the company they had been strategically targeting over the last several months was employee-owned, or at least partially employee-owned, through an Employee Stock Ownership Plan

How May The New Tax Act Affect Your ESOP?

The Tax Cuts and Jobs Act of 2018 (the “Act”) was signed into law by President Trump on December 22, 2017. It is heralded as making the most significant changes in corporate taxation in the US in more than 30 years. The Act makes changes to C corporations, S corporations and other pass-through entities. Some

Employee ownership embraced by green-energy pioneers

Three pioneers of the solar industry in the Bay Area are in different stages of transferring the businesses they created, but they are all traveling on a similar road. They are all transferring the ownership of their businesses to their employees.

SOLARCRAFT

Bill Stewart is the former CEO and co-owner of SolarCraft, a 34-year-old solar company

A Guide to Employee Stock Option Plans

Employers can compensate their employees in three primary forms: cash, benefits and stock. Cash compensation – as would be expected – includes hourly wages, salaries, bonuses, contract income, benefit plan payouts and matching retirement plan contributions. Benefits include vacation, sick time, insurance, tuition, childcare, and other perks like expense accounts and company vehicles.

Employers can also