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Why Are We Here?

The NCEO, Employee Ownership, and You

We at the National Center for Employee Ownership (NCEO) prefer to talk about employee ownership, not about ourselves. The emphasis at this Web site is on providing information on employee ownership, not on promoting the NCEO. As a consequence, however, some visitors who are new to us misunderstand who and what we are.

Why the NCEO Exists

The NCEO is a nonprofit organization, established in 1981, whose mission is to provide the most objective, reliable information possible on employee ownership at the most affordable price we can. We primarily cover employee stock ownership plans (ESOPs), broadly granted stock options, and employee stock purchase plans, because those are the main vehicles for employee ownership in the U.S. As part of our commitment to providing objective information, we do not provide ongoing consulting services--that is, we do not "do deals." That means, for example, that when we help someone decide whether to install an ESOP, stock option plan, etc. we have no monetary interest in the result.

Also, we do not lobby; as a tax-exempt organization under section 501(c)(3) of the Internal Revenue Code, we are prohibited from attempting to influence either domestic or foreign legislation.

The Nature of Our Work

The NCEO is a unique organization in this field and is generally considered the leading authority on employee ownership. We write and publish an entire library of publications dealing with every facet of employee ownership--what ownership plans there are, how they work, what the right solutions are in particular situations, how to get employees more involved in their work once they are "employee owners," how to communicate the benefits of the plan to employees and customers, what research in the field has found, and more. We edit and publish the only professional journal on the subject, the Journal of Employee Ownership Law and Finance. We also edit and publish the most comprehensive newsletter on the subject, the Employee Ownership Report, which is received exclusively by NCEO members. This is a newsletter about employee ownership, not about us; you'll find 16 pages of solid information about every aspect of the field, information that you'll find yourself returning to and sharing with others. (Many of the articles on this Web site come from back issues of our newsletter or are adapted from such articles.)

Due to our expertise, we have repeatedly been drawn on to edit or write books for commercial publishers: Employee Ownership in America: The Equity Solution (Lexington Books, 1986); Taking Stock: Employee Ownership at Work (Ballinger, 1986), Employee Ownership in Public Companies (Quantum, 1990); Understanding Employee Ownership (Cornell I&LR Press, 1991); and Employee Stock Ownership Plans (Harcourt Brace, 1996, 1999). We have also written many articles for trade and professional publications. We often give interviews to reporters who are preparing articles dealing with employee ownership.

We also hold dozens of events across the U.S. and abroad every year: one-day workshops on ESOPs and stock options, seminars on employee participation programs, a yearly conference on equity compensation for multinational corporations every fall, and our annual three-day conference each April.

Sources of Funding

We were surprised (and pleased) to find that many NCEO members think our prices are so low that we must have substantial outside funding (individual donations, government grants, foundation money, etc.) in order to carry on the work we do. They see us charging much less than what comparable organizations charge for membership, meetings, etc., and wonder where the money comes from. In fact, we are entirely supported by the work we do--that is, by revenues from publication sales, event registrations, and membership dues. We are able to do this because (1) we run a very lean, efficient organization and (2) because our books, events, and membership services are very popular throughout the U.S. and abroad. There are enormous benefits to being self-supporting, mainly that we are completely independent and unbiased because we don't have to meet the wishes of outside donors, and we can plan ahead without worrying where the next grant is coming from.

Why Isn't It Free?

Although our self-supporting nature makes us a better and stronger organization, it also means that we cannot afford to give away the material we publish, run free ESOP workshops or other events, or provide more than minimal advice to nonmembers. (Please note, however, that we are delighted to provide reporters and others in the media with information for stories on employee ownership at no charge.) Then again, nobody else does anything like what we do for free.

What Members Get--and Should Get More Of

As explained in the material in the elsewhere section of this site, our thousands of members receive (1) our detailed bimonthly newsletter, (2) access to the members area of this site (including its searchable database of hundreds of service providers), (3) discounts on our many publications and meetings, and (4) the right to call or email for advice, answers to questions, referrals to fellow members who can share their experiences, and referrals to employee ownership consultants.

The last benefit is potentially the most important. As our executive director, Corey Rosen, noted in a newsletter article, "We get a lot of calls from members, but not enough. Calling us can save you a lot of heartache." All of us here at the NCEO answer our members' questions, but for serious advice you'll especially want to turn to Corey. The $90 (or whatever) you spend on an NCEO membership can save you, for example, from literally tens of thousands of dollars wasted on inappropriate consultant fees; from hiring a so-called expert who doesn't have the necessary expertise to create or maintain your employee ownership plan correctly; or from hiring someone who does have the expertise but who will involve you in a questionable transaction. Just contact us; we encourage you to use email us (at nceo@nceo.org) when possible.

Once in a while, we encounter someone who intends to implement an ESOP or other stock plan and thinks he or she will save $90 by not joining us. Then they end up spending 80 thousand dollars putting an ESOP into place without getting any unbiased advice about what they should be doing, with whom, and for how much. The phrase "penny-wise and pound-foolish" comes to mind.

Resources for Academics

NCEO membership is virtually a must for those wishing to conduct serious research in this area, whether they are professors or graduate students. (Annual membership fees for such individuals are only $35.) We almost invariably find that unless they work with us or one of the three or so leading academics in this area, these individuals are not fully aware of the research that has been done, have misguided expectations of what can and should be done, and often do not produce work of any real value.

Not for Members Only

Although we are a membership-based organization, our outreach is not limited to members. Many people purchase our publications and attend our events without becoming NCEO members; they simply pay higher prices.

Why We Are Here on the Internet

This Web site was created in 1994 to allow us to carry on our mission online. It provides NCEO members with a supplementary source of information and introduces non-NCEO members to employee ownership plans. Our site also provides information about the NCEO itself--our publications, meetings, and membership services. The excerpts from our publications give people a chance to preview them before they buy.

Although we cannot afford to expend much time or money on free services, having this Web site allows us to provide basic information to the world at large at no expense to us (it has taken some of my time and a little money to create and maintain the site, but there is no incremental expense to us when someone views a page here). We are delighted to do this, because our mission is to spread information on employee ownership, not to make money.

For anyone with a casual interest in employee ownership, what you find on this site may fulfill all your needs. Remember, though, that if you are going to implement an employee ownership plan at your company or otherwise have a serious interest in employee ownership, what you read here or anywhere else on the Internet cannot even begin to substitute for the detailed information in our books and other publications, the experience of attending our events, the information provided to NCEO members, or the advice of competent professionals who are experienced in this field.

A Final Request

If you an NCEO member and have a Web site, please email us at nceo@nceo.org with the URL so we can add a link to it on our site (in return, we'd like you to add a link to us where appropriate). And finally, whether or not you're an NCEO member, we'd really appreciate it if you put a link to us on your own site. Bringing people to our pages helps spread the word about employee ownership across the world.

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