Freezing or Terminating an ESOP

Each year, 3% to 4% of all employee stock ownership plans (ESOPs) are terminated; an unknown percentage are frozen, usually because the sponsor wants to create a different kind of benefit plan, wants to recapture some of the ESOP's ownership or, more rarely, has financial problems.

How Small Is Too Small for an ESOP?

One of the most frequently asked questions the NCEO has received over the last few decades is "Is my company too small to have an ESOP?" There is no simple answer to this, and certainly there are no upper or lower limits per se on the size of a company sponsoring an ESOP.

Inclusive Enterprises

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.

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

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: