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This page presents counts and characteristics of ESOPs and other employee stock ownership plans in the U.S., using data made available by the U.S. Department of Labor, Survey of Consumer Finances, and other sources. Page Contents

A large body of research explores the effects of employee ownership on firms and workers. This page provides a guide to key findings.

Over the years, the NCEO has conducted and reported on research on employee ownership and corporate performance. The research comes to a very definite conclusion: the combination of ownership and participative management is a powerful competitive tool.

The NCEO’s 2023 Employee Ownership 100 list includes the nation’s largest companies that are at least 50% owned by an employee stock ownership plan (ESOP) or other broad-based employee ownership plan. Many are 100% employee-owned.

ESOPs have tax and planning advantages that can make them attractive ways to transition a business, reward employees, or finance growth. But their biggest advantage may be the competitive edge they provide. 

Based on an NCEO analysis of 1,232 leveraged ESOP transactions at three large banks, 1.3% of ESOP companies in the sample defaulted on their loans in a way that imposed losses on their creditors for loans in effect between 2009 and 2013 (or an annual rate of 0.2%).

We surveyed ESOP companies starting on April 10 in order to gather data on how they are faring so far in the application process. As of this writing, we have received 164 responses from companies with ESOPs. Of these, 115 or 70% have already submitted a PPP loan application, and most of the rest are actively working with a lender.

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

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: