New York State Releases Report Highlighting Employee Ownership
The Office of the New York State Comptroller recently released a report “Employee Ownership of Businesses in New York State” outlining the most common forms of employee ownership, the number of such businesses in New York State from the NCEO comprehensive database, and how “employee ownership can positively impact employee compensation and retirement assets making it an effective tool to create lasting wealth and improving employee satisfaction.”
The authors conclude that New York could encourage employee ownership more broadly by:
- Expanding networks and partnerships of business owners, employees, labor unions, and economic developers to provide technical assistance and education to potential employee-owners and employee-owned businesses on the benefits and drawbacks of EO;
- Creatively leveraging resources or identifying new opportunities that can support EO as a way to create or retain jobs and strengthen communities; and
- Developing new ways to educate the public on what EO is and which companies around the State and in their local communities are employee-owned.
The report points to NCEO research documenting the ESOP advantage in retirement assets including for lower wage workers and workers approaching retirement age.
NCEO members can learn more about ESOPs in New York (as well as other states) by downloading slides here.