New Report Shows That ESOP Companies Generate More Jobs

In a study (PDF format) released on July 26, Alex Brill, a former advisor to the Simpson-Bowles bipartisan deficit reduction commission and a fellow at the American Enterprise Institute, concludes "The unique strengths of employee ownership drove company gains and jobs in the past decade, while helping insulate S-ESOP businesses from the adverse effects of the recent recession." Brill found that members of Employee-Owned S Corporations of America increased employment by 60% over the past decade, versus flat employment in the economy as a whole. In response to the report, Ron Kind (D-Wis.) and Erik Paulsen (R-Minn.) of the House Ways and Means Committee wrote, "It's time to reach across the aisle, find the common ground that we know exists, and do everything we can to get our economy back on track and create the good paying jobs we need to sustain economic growth. By fostering highly productive companies, allowing employers to hire and retain employees, and then encouraging saving for sound retirement, the ESOP model can continue to help American workers and middle class families."