Largest Study Yet Shows ESOPs Improve Performance and Employee Benefits

In the largest and most significant study to date of the performance of employee stock ownership plans (ESOPs) in closely held companies, Douglas Kruse and Joseph Blasi of Rutgers have found that ESOPs appear to increase sales, employment, and sales per employee by about 2.3% to 2.4% per year ove

Model State Employee Ownership Legislation

This paper provides model language for state employee ownership options. They include setting up a state employee ownership center; allowing professional corporations to be owned by ESOPs; allowing ESOP-owned companies that are majority-owned and/or run by qualifying individuals to qualify for state set-aside programs for women, minorities, and disabled veterans; and creating a tax credit for feasibility assessments for conversion to employee ownership.

NCEO Methodology for Counting ESOPs

For our counts of the numbers of ESOPs, related plans, and participants, see our Statistical Profile of Employee Ownership.

Open-Book Management

What Is Open-Book Management? Open-book management has been called the most important management trend in the country. Definitions of open-book management vary, but it is generally accepted to include the following components:

Should ESOP Trusts Hold Cash?

The Internal Revenue Code, which along with ERISA is one of the main laws that govern ESOPs, requires that ESOPs be “primarily” invested in company stock. ESOPs typically hold assets other than company stock. Sixty-one percent of the companies responding to the NCEO’s 2023 ESOP repurchase obligation survey have cash in the ESOP trust.

State Legislation on Employee Ownership

https://capitol.texas.gov/Search/DocViewer.aspx?ID=88RHB023891B&QueryText=%22Employee+Stock+Ownership+Plan%22&DocType=B

State Legislation on Employee Ownership

There has been increasing interest in employee ownership in state legislatures. This article describes existing state employee ownership legislation and key pending bills.

Ten Ways to Make Your ESOP Great

On average, ESOPs are wins for everyone—sellers, employees, and the company itself—but the average is pulled up by a handful of stellar ESOP companies.

The Rights of ESOP Participants

To get the tax benefits employee stock ownership plans (ESOPs) provide, companies must abide by the rules designed to make sure taxpayers are getting their money's worth.