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
Merrick’s employee ownership journey started at the beginning of our company, with Founder Sears Merrick. In fact, the first stock transactions in Merrick’s history were recorded in the year we were incorporated, 1959. Sears had a theory that anyone who worked for themselves would work that much harder (and he was right!). From
Committed to Using Business As a Force For Good, Fireclay Tile Announces Significant Expansion of Employee Ownership
Fireclay Tile, the socially responsible California tile maker with a mission to do good, today announced a significant expansion to Employee Ownership. As the first and only Certified B Corp™ tile maker and the first Climate Neutral Certified tile company, Fireclay Tile strives to galvanize others in the industry to build a better version of capitalism
The gap between rich and poor has widened in many countries over the past few decades and continues to expand. So here’s an idea: What if more companies allowed employees to own a share of the pie? Many economists and business experts think society would become more equitable if workers owned a stake in their
In theory, employee ownership through an Employee Stock Ownership Plan (ESOP) is an almost perfect idea, since it benefits employees and businesses equally and simultaneously.
Shares are allocated to, rather than purchased by, the employees, which puts ownership within the grasp of many who might never own a business otherwise. Employees have a strong incentive to
Gene Milstein, founder, and his wife, Dee Milstein, co-owner of Applewood Seed Company, announce the formation of an Employee Stock Ownership Plan (ESOP), transferring significant ownership of the company to current and future employees.
As part of a comprehensive succession plan, the Milsteins formed the ESOP to implement their goal of keeping Applewood Seed as a
Sen. Ron Johnson (R-Wis.), one of the most conservative members of Congress, and Rep. Alexandria Ocasio-Cortez (D-N.Y.), one of the most liberal, have both introduced sweeping proposals to broaden employee ownership in the U.S. That surprising fact testifies to just how practical—and urgent—this idea is.
Too many Americans have too
After the bruising crises we’re now going through, it would be wonderful if we could somehow emerge a fairer nation. One possibility is to revive an old idea: sharing the profits.
The original idea for businesses to share profits with workers emerged from the tumultuous period when America shifted from farm to factory. In December 1916,
“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
Every year, around 400 of the best and most successful U.S. companies vie against one another to make it onto Fortune’s list of the ‘100 Best Companies to Work for in America’.
In addition to the prestige of being named in the announcement via the well-respected magazine, inclusion also enables companies to attract better talent as
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 — including
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
Employee ownership advocates maintain that if more citizens were owners of businesses, then wealth inequality, and perhaps income inequality, would decrease. I believe it would, too. But I also say it depends.
The History of the ESOP
Taking note that the most common form of having employees be “owners” is the employee stock ownership
Not long ago, Natalie Reitman-White was at a national conference on employee ownership, listening to two of her idols on stage — Full Sail Brewery’s Irene Firmat, and New Belgium Brewery’s Kim Jordan.
“I thought how amazing is this, two female CEO co-founders running beer companies, totally committed to employee-ownership culture and sustainability,” Reitman-White says.
Somewhere, Milton Friedman must be spinning. Whatever they thought they were doing, the 181 CEOs who signed the Business Roundtable’s breakthrough statement on the purpose of corporations embraced a much wider interpretation of corporate responsibility—signalling the beginning of the end for the shareholder primacy cult. The pressure on business leaders to declare and deliver against a
Tossing cornhole, munching barbecued chicken and lining up at a free ice cream truck, the employees of Yankee Publishing Inc. were celebrating something new on a muggy Aug. 22 afternoon in Dublin: becoming owners of the company they work for. While ownership of Yankee Publishing may have been a new concept to them, it’s not
Bolstered by a vision of employee ownership, OwnersEdge Inc. is in growth mode. The City of Pewaukee-based holding company is headed by Lisa Reardon, who has expanded the business to include others in the field of niche technological solutions and expertise. All are structured as employee stock ownership plan companies, or ESOP companies.
Reardon worked in
As Scott Dunbar and Alan Brawn eyed retirement in recent years, they had to make some serious decisions about the Bangor construction company they started 16 years ago. They could sell Dunbar and Brawn Construction to a competitor. They could simply close the doors of their headquarters on Hildreth Street and sell off
Workplace flexibility and financial security like student debt repayment programs are some of the benefits Generation Z and millennials value the most — but employers who want to impress millennial workers should also consider equity compensation.
Younger employees view stock plan benefits differently than older generations. More than half of employees under age 35 (57%) agreed