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ESOPs by the Numbers

Updated April 2019

This page presents counts and characteristics of ESOPs using data made available by the U.S. Department of Labor.

Contents

  1. How Many ESOPs Are There?
  2. How Many Workers Are in ESOPs?
  3. What Kinds of Companies Have ESOPs?
  4. Where Are ESOPs Located?
  5. How Is the ESOP Universe Changing Over Time?
  6. How Often Are These Counts Updated?


How Many ESOPs Are There?

As of 2016, the most recent year for which data is available, there were 6,660 ESOPs in the United States, holding total assets of nearly $1.4 trillion. A company may sponsor multiple ESOPs; the number of unique companies with an ESOP is approximately 6,460.

How Many Workers Are in ESOPs?

These plans cover over 14.2 million participants, of whom 10.7 million are active participants—those currently employed and covered by an ESOP.

Table 1: Table of Plans, Participants, and Assets
PlansTotal participantsActive participantsEmployer securities (millions)Total plan assets (millions)
All stand-alone ESOPs5,5531,781,5361,293,618$125,480$140,513
Private companies5,4011,378,0421,004,609$104,649$114,242
Large private companies2,0881,240,142901,187$93,575$101,519
Small private companies3,313137,900103,422$11,074$12,723
Public companies152403,494289,008$20,831$26,271
All KSOPs1,10712,497,5659,383,202$152,621$1,238,065
Private companies6911,420,4491,001,352$25,581$149,837
Large private companies3951,408,313992,181$24,712$148,059
Small private companies29712,1369,171$869$1,779
Public companies41611,077,1168,381,850$127,040$1,088,228
Total6,66014,279,10110,676,820$278,101$1,378,578
Source and Methodology: These numbers are sourced from the NCEO's analysis of the Private Pension Plan (PPP) Research File made available by the Department of Labor from data reported on the Form 5500. The Research File is created each year by the Employee Benefits Security Administration's (EBSA) Office of Policy and Research (OPR) at the DOL and is used to generate and analyze aggregate statistics on the characteristics of the private pension plan universe. Direct Filing Entities (DFEs), welfare plans, one-participant plans, public retirement plans, and duplicate filings of other retirement plans are excluded from the Research File. NCEO methodology follows DOL standard practices with any exceptions noted.

Definitions of ESOPs are based on the plan characteristic codes filled in by the sponsor on line 8 of the form, or these codes were added as a result of the DOL's cleaning and editing of the data: 2O ("ESOP other than a leveraged ESOP") or 2P ("Leveraged ESOP—An ESOP that acquires employer securities with borrowed money or other debt-financing techniques"). Unlike the DOL, however, our count also includes plans without the 2O or 2P codes but with the code 2Q ("The employer maintaining this ESOP is an S corporation").

Large plans are defined as plans with 100 or more total participants and small plans as plans with fewer than 100 participants.

KSOPs are defined as ESOPs with a 401(k) plan feature. Stand-alone ESOPs have no such feature.

Active participants include any workers currently in employment covered by a plan and who are earning or retaining credited service under a plan.

Total asset amounts shown do not include the value of allocated insurance contracts of the type described in 29 CFR 2520, 104-44.

What Kinds of Companies Have ESOPs?

ESOPs are represented across a wide variety of industries, with a plurality of plans in services or manufacturing companies:

Figure 1: Industries of ESOP Sponsors

S vs. C Corporations

The majority of ESOPs are in C corporations:

Table 2: S Corporation vs. C Corporation ESOPs
PlansTotal participantsActive participantsEmployer securities (millions)Total plan assets (millions)
S Corporations3,336914,568657,592$75,445$88,147
C Corporations3,32413,364,53410,019,227$202,655$1,290,432
Note: We classify an ESOP as an S Corporation if the plan's Form 5500 filing uses the pension benefit code 2Q, "The employer maintaining this ESOP is an S Corporation."

Where Are ESOPs Located?

The midwestern U.S. is home to the greatest number of ESOPs, followed by the South:

Figure 2: Locations of ESOPs
US ESOP LocationsThe below table breaks down the number of ESOPs and participants by Census region, sub-region, and state.

Table 3: ESOPs by location
StateNumber of ESOPsTotal ParticipantsActive Participants
Northeast1,0883,298,7622,125,941
New England 3201,030,072651,093
Connecticut64422,631249,248
Maine427,3204,557
Massachusetts135363,792201,068
New Hampshire296,8174,935
Rhode Island17223,272187,258
Vermont336,2404,027
Middle Atlantic7682,268,6901,474,847
New Jersey1411,036,682658,566
New York321846,576551,091
Pennsylvania307385,432265,191
Midwest 2,1193,615,2552,719,328
East North Central1,2292,138,2931,587,558
Indiana186133,882106,967
Illinois347747,387567,551
Michigan207288,117213,774
Ohio296784,564548,483
Wisconsin193184,342150,783
West North Central8891,476,9631,131,771
Iowa161455,337343,307
Kansas10672,07145,975
Minnesota270790,124617,320
Missouri204102,51881,049
Nebraska7024,07318,838
North Dakota5425,85519,425
South Dakota246,9855,857
South1,9495,934,3704,766,641
South Atlantic 9992,805,0332,170,585
Delaware952,01128,663
District of Columbia144,4102,644
Florida186501,923430,330
Georgia157579,349486,741
Maryland130343,563248,834
North Carolina122781,487588,951
South Carolina6037,43925,426
Virginia292499,738355,081
West Virginia285,1143,913
East South Central341373,148283,839
Alabama7648,33737,057
Kentucky111131,911100,856
Mississippi4624,99719,396
Tennessee109167,902126,531
West South Central6092,756,1892,312,217
Arkansas591,709,2151,552,599
Louisiana8338,62431,043
Oklahoma8561,03348,560
Texas382947,317680,014
West1,5011,430,5221,064,834
Mountain422168,222122,008
Arizona10445,64434,026
Colorado11636,83226,110
Idaho3728,27720,378
New Mexico397,0574,493
Montana347,0024,877
Utah6031,29923,588
Nevada239,7026,514
Wyoming112,4082,023
Pacific1,0781,262,300942,826
Alaska271,5941,227
California806681,229510,790
Hawaii6616,86711,686
Oregon7254,33340,774
Washington107508,277378,350

How Is the ESOP Universe Changing Over Time?

The below chart and table show the change in total ESOPs and total participants over time from 2010 to 2016.

Figure 3: Count of ESOPs and Total Participants, 2010-2016
Table 4: Count of ESOPs, Participants, and Plan Assets, 2010-2016
Filing YearNumber of ESOPsTotal participantsActive participantsTotal plan assets (millions)
20107,13813,477,18710,306,818$944
20116,94113,462,95510,288,363$917
20126,90813,823,59510,603,334$1,059
20136,79513,927,535 10,578,114$1,237
20146,717 14,050,344 10,563,219$1,307
20156,669 14,431,622 10,829,726$1,296
20166,660 14,279,101 10,676,820$1,379

New ESOP Creation

Since 2010, an average of just under 230 new ESOPs have been created each year. The below chart shows new ESOP creation since 2010. Note that these numbers include all newly filing ESOPs, potentially including some newly established plans at companies that had already had an ESOP in place.

Figure 4: New ESOP Creation, 2010-2016

Age of Existing ESOPs

Most current plans were created before 1999. These plans also contain by far the greatest number of participants, as shown below.

Table 5: ESOPs by Age
Plan effective year (year created)Number of plans% of plansTotal participants
Before 19992,92045%12,814,992
1999 - 20081,97330%898,483
Since 20091,66725%565,624

How Often Are These Counts Updated?

The most comprehensive data on ESOPs is collected on the Form 5500. The Form 5500 series is a set of forms developed by the Department of Labor (DOL), the Internal Revenue Service, and the Pension Benefit Guaranty Corporation to allow benefit plans such as ESOPs to satisfy annual reporting requirements under the law. The statistics on this page are sourced from NCEO's analysis of the DOL's Form 5500 research files.

Form 5500 filings are due seven months after each plan year ends. The DOL does significant work based on their historical knowledge of the companies and plans to correct for common errors and to weight the data to more precisely account for missing data and late filers. Generally, research files for each new filing year are available roughly a year after that deadline, e.g., filing year 2014 data was posted in September 2016.

For questions about this or any of our research, contact NCEO Research Director Nancy Wiefek at nwiefek@nceo.org / 510-208-1312, or NCEO Research Associate Nathan Nicholson at nnicholson@nceo.org / 510-208-1313.
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