Experts Ponder, Why Aren’t There More ESOPS?
The post Experts Ponder, Why Aren’t There More ESOPS? appeared on BitcoinEthereumNews.com. With the preponderance of research on employee ownership demonstrating it generates superior performance and growth, improved culture and engagement, and distinctive wealth building for workers, why aren’t more companies embracing employee ownership? In my 30-plus years advising on ESOPs – and structuring and closing over 300 of them – I’ve continually asked that question. Still, while the number of new formations hasn’t grown meaningfully, recent momentum on several fronts signal that this extraordinary wealth and jobs opportunity awaits millions more workers. Indeed, the mystery about employee ownership was a topic my colleague Jake Cravens and I discussed recently on the Conscious Capitalists’ podcast with co-hosts Raj Sisodia and Timothy Henry. Given ESOPs’ well-documented benefits for companies that have established them and for their employees, it’s a question well worth exploring. Our discussion centered on why embrace employee ownership – and it offered the chance to accentuate the positive initiatives. Research shows the value of employee owned companies to the bottomline and the culture. getty First, it’s striking that of the estimated 1.56 million U.S. companies with 10 employees or more that the North American Industry Classification System (NAICS) counts, companies with ESOPs numbered just 6,232 in 2020 (by the National Center for Employee Ownership’s count.) Or compare the estimated 400 ESOPs created last year and this year with the 4,300 U.S. private equity deals completed in 2022 and the 5,200 in 2021. So, why so few ESOPs? Groundbreaking research that our firm Verit Advisors initiated provides insights into that and other critical questions. We surveyed leaders from 200 companies across various industries, including 90 that had completed a full or partial ESOP, 80 that are considering one, and 30 that aren’t. These business leaders identified key factors that hinder and also heighten interest in ESOPs: 1. Operating rules and the…
The post Experts Ponder, Why Aren’t There More ESOPS? appeared on BitcoinEthereumNews.com.
With the preponderance of research on employee ownership demonstrating it generates superior performance and growth, improved culture and engagement, and distinctive wealth building for workers, why aren’t more companies embracing employee ownership? In my 30-plus years advising on ESOPs – and structuring and closing over 300 of them – I’ve continually asked that question. Still, while the number of new formations hasn’t grown meaningfully, recent momentum on several fronts signal that this extraordinary wealth and jobs opportunity awaits millions more workers. Indeed, the mystery about employee ownership was a topic my colleague Jake Cravens and I discussed recently on the Conscious Capitalists’ podcast with co-hosts Raj Sisodia and Timothy Henry. Given ESOPs’ well-documented benefits for companies that have established them and for their employees, it’s a question well worth exploring. Our discussion centered on why embrace employee ownership – and it offered the chance to accentuate the positive initiatives. Research shows the value of employee owned companies to the bottomline and the culture. getty First, it’s striking that of the estimated 1.56 million U.S. companies with 10 employees or more that the North American Industry Classification System (NAICS) counts, companies with ESOPs numbered just 6,232 in 2020 (by the National Center for Employee Ownership’s count.) Or compare the estimated 400 ESOPs created last year and this year with the 4,300 U.S. private equity deals completed in 2022 and the 5,200 in 2021. So, why so few ESOPs? Groundbreaking research that our firm Verit Advisors initiated provides insights into that and other critical questions. We surveyed leaders from 200 companies across various industries, including 90 that had completed a full or partial ESOP, 80 that are considering one, and 30 that aren’t. These business leaders identified key factors that hinder and also heighten interest in ESOPs: 1. Operating rules and the…
What's Your Reaction?
