New Study Shows S ESOP Corporations' Growth Performance Was Far Better Than the Economy in 2008

A new study for the Employee-Owned S Corporations of America (ESCA) shows that S corporation ESOPs did far better than the average company in 2008 in terms of employment growth, health and retirement benefits, wages, wealth creation, and job creation. The study was performed by Phillip Swagel, a visiting professor at Georgetown University and former assistant secretary for economic policy at the Treasury Department, and Robert Carroll, an executive-in-residence at the American University School of Public Affairs and former deputy assistant secretary for tax analysis at the Treasury Department.

Jobs grew by 1.9%, compared to a 2.8% decline in the economy. Wages grew 5.9%, compared to 3.2% overall, revenues grew 15.1% compared to a drop of 3.4% overall, and retirement plan contributions grew 18.6% compared to 2.8% overall, among other impressive numbers. The average wage was $50,225 in the S corporation ESOP companies, compared to $31,616 overall.

The data came from 49 ESCA member respondents, so the sample is skewed and is probably not representative of S corporation ESOP companies overall. Still, the differences are large enough that the sample problem probably cannot explain them all away.

For a copy of the study, contact Noelle Lundberg at ESCA at [email protected].