The Employee Ownership Update
February 1, 2012
Employee Ownership in the 2010 General Social SurveyThe 2010 General Social Survey, one of the largest and longest-running national surveys, found that the percentage of employees saying they have ownership in the companies where they work has been stable since 2006 at 17.5% of the private sector workforce. Among those who work for organizations that have stock, 36% report owning shares. The percentage of respondents saying they have stock options declined slightly, from 9.3% of the private sector workforce in 2006 to 8.7% in 2010. The GSS also examined voluntary and involuntary turnover. Less than 3% of people who say they own stock in their companies reported being laid off in the last 12 months, compared to 12% of those who do not own stock. In addition, while 24% of the non-owner employees intend to look for new jobs in the near future, only 13% of employee-owners do.
Survey Shows ESPPs Remain Key Part of Equity StrategiesResults from the 2011 National Association of Stock Plan Professionals/Deloitte Consulting survey show that employee stock purchase plans (ESPPs) continue to be an important part of public companies' equity strategies. The 598 respondents to the survey were all from publicly traded companies and were broadly distributed among industries. Twenty-eight percent had 10,000 or more employees and 31% had fewer than 1,500. Fifty-two percent of the responding companies have ESPPs, 82% of which are Section 423 plans. Of the remaining 48%, 29% (14% of the entire sample) once had a plan but eliminated it. Section 423 plans tended to have higher participation rates, though only a quarter have more than 40% of employees participating. By contrast, 38% of nonqualified plans have 0 to 10% participation. Over two-thirds of qualified plans offer a 15% discount. Nonqualified plans are more evenly split, with many offering a 15% discount and an equal number offering no discount.
Principal 10 Best Companies for Employee Financial SecurityThe Principal Financial Group released its tenth guide to best practices in employee financial security, which draws on the lessons of the winners of a prize for small and mid-sized companies. Employee-owned companies are traditionally well represented on this list.
Companies are also invited to apply for the 2012 awards. Applications are available online. Companies must have fewer than 1,000 employees to apply. Even if your company does not win, the feedback from the application process provides valuable benchmarking.