A commonly distressing experience for owners in a company with an employee stock ownership plan (ESOP) is that the price of the business as a whole is not the price the ESOP will actually pay.
Back in 1982, the National Center for Employee Ownership was in its second year. Our staff consisted of three people: Karen Young, myself, and an intern, Mike Yoffee. We thought it would be a good idea to have an employee ownership week.
The advantages of ESOPs are appealing, but it may not be feasible for every company. Selling to an existing ESOP company could make more sense for some businesses.
According to the latest data available from the Department of Labor, there were 6,669 ESOPs covering 14.4 million participants and holding close to $1.3 trillion in plan assets as of the end of 2015.
If you have ever been to an NCEO conference or meeting, you may have bumped into Ken Baker, CEO of 100% employee-owned NewAge Industries and a longtime advocate for employee ownership in the United States.
As the chair and immediate past chair of the NCEO’s board of directors, our role is to support the NCEO’s pursuit of its mission to make employee ownership thrive. We are happy to report to members and all stakeholders that the NCEO is continuing to deliver on that mission by investing in its strengths and exploring new ways to support employee-owned companies.
