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An exploration of the interaction between business certifications, procurement policy, and ESOPs. The intersection between ESOPs and business ownership certifications (such as minority-, woman-, and veteran-owned) is often seen as a tough one to navigate. Though the regulations guiding procurement and contracting policy are strict for a reason, they can become prohibitive when less straightforward business structures are involved, so much so that many businesses fear losing their very valuable certifications should they sell more than 50% of the company to employees. This oftentimes only serves to penalize the populations they're supposed to serve—women, minorities, veterans, and the business owners and employees who belong to aforementioned groups. Thanks to a generous contribution from the W.K. Kellogg Foundation, the NCEO was able to begin exploring these interactions more in depth. This page will serve as the repository for resources as we continue to work in this field.

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

By NCEO Senior Staff Member Corey Rosen

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.

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

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:

Broad-based employee ownership plans, primarily employee stock ownership plans (ESOPs) and worker-owned cooperatives, are a bipartisan, effective means to help create an economy that is both more productive and more able to provide financial security for workers in all sectors of the economy.

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.

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

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