Employee Ownership Blog

Ramona Rodriguez-Brooks

Think Like an Owner: Building the Culture That Makes Employee Ownership Work

Employee ownership creates meaningful potential, but that potential is only realized when the organizational culture actively supports it. ESOP ownership combined with a strong ownership culture is what drives higher performance; the structure alone is not sufficient. That is the foundational premise of a recent NCEO webinar led by Matt Hancock, Principal Consultant at Praxis Consulting Group, who offered a practical framework for building a workplace where every employee can think, feel, and act like an owner.

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Corey Rosen

Record Amount of GDP Going to Profits Shows Kelso Was Right

A new analysis from KPMG shows a record gap between the share of GDP going to profits compared to the share going to compensation. Corporate profits were 8% of GDP in 1992 but are 15.85% today; compensation has dropped from 66.2% in 1982 to 61.9% today. The data parallel other research showing that productivity gains have risen much faster than compensation. In a LinkedIn post, Diane Swonk, chief economist and managing director at KPMG, wrote, “This chart from my recent Economic Compass still haunts me. A friend refers to it as the ‘revolution chart,’ which [is] disturbing but telling. Inequality fuels social and economic instability.”

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Corey Rosen

Illinois Bills Would Create State Employee Ownership Investment Fund and Fund Illinois Employee Ownership Center

The Employee Ownership Development Act (Illinois House Bill 4955), introduced by Democratic Representative Will Guzzardi, would direct the state treasurer to segregate up to 5% of the state’s investment portfolio into an “Employee Ownership Development Account.” The funds would be made available to companies that are majority employee-owned through ESOPs, employee ownership trusts, or worker cooperatives. Funds would be invested through “employee ownership development firms,” which are capital providers with a track record of providing capital to employee ownership companies. The funds must invest at least 1.5 times the amount of capital provided by the state. Funds can be used for ownership transitions or expanding existing employee ownership companies. 

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Corey Rosen

The ERISA Advisory Council Appears to Be Out of Commission

According to a report by Paul Mulholland of the Profit Sharing Council of America,the ERISA Advisory Council did not meet in 2025 and has no plans to meet in 2026. The 15-member council is mandated by Section 512 of the Employee Retirement Income Security Act of 1974 (ERISA). The council makes recommendations on ERISA issues to the Secretary of Labor. The council is appointed by the Secretary, with three members representing employee organizations, three from employers, three from the general public, and one each from various professional fields. The council is supposed to hold at least four meetings per year. Mark DeBofsky, a member of the council until the end of 2025, reports that there were no emails, notices, or other communications from the DOL to the council, and that inquiries went unanswered.

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Ramona Rodriguez-Brooks

How to Successfully Navigate an ESOP Transaction: Insights from Two Industry Veterans

On February 3, Nick Francia and Mark Padjen presented an NCEO webinar where they walked attendees through the steps of an ESOP transaction, in particular highlighting the roles different advisors play on the path to employee ownership. If you're a business owner exploring exit strategies or a CFO evaluating succession planning options, understanding how to structure and execute an ESOP transaction could be one of the most valuable investments of your time. These two advisors noted that a successful ESOP transaction requires excellent execution from both the advisory team and the company. Here's what each party should focus on:

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Corey Rosen

Funding for State Centers in Recent DOL Appropriations Bill

The 2026 appropriations bill for the Department of Labor (DOL), passed on February 3 by Congress, lacks line-item funding for state employee ownership offices authorized by the WORK Act. The Senate Appropriations Committee had recommended a specific appropriation last July. However, a joint explanatory statement from the House and Senate appropriation committees states that $2 million should be provided for the Employee Ownership Initiative. In general, the joint explanatory statement notes that its recommendations on spending (which cover a variety of issues) “should be complied with unless specifically addressed to the contrary in this explanatory statement.” 

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Corey Rosen

Pro-Employee Ownership Legislation Passes the First Hurdle in the European Parliament

Thanks to Kosta Juri, director of operations at the Institute for Economic Democracy (IED), and Rachel Bachmann, head of strategic initiatives at IED, for helping draft this post.

Last week, the European Parliament (EP) plenary adopted (by 492 votes in favor, 144 against, and 28 abstentions) a resolution with recommendations to the European Commission to propose a harmonizing directive aimed at creating an EU-wide unified legal framework (the “28th Regime,” referring to an additional legal framework alongside those of the current 27 member states) for innovative companies.

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