NEWS: ESOP Companies Report Continued Economic Growth in 2014

The following release was sent out by the Employee Ownership Foundation today.

Foundation

For Immediate Release: September 10, 2015

ESOP Companies Report Continued Economic Growth in 2014

September 10, 2015 (Washington, DC) – Results from the Employee Ownership Foundation’s 24th Annual Economic Performance Survey of ESOP (employee stock ownership plan) companies show that ESOPs continue to see increased economic growth. Additionally, ESOP companies continue to have increased share value, report high productivity among employee owners, and have overwhelming support for the ESOP among leaders of the companies, according to the results of this 2015 survey which was conducted among members of The ESOP Association in the summer of 2015.

Since the Employee Ownership Foundation’s annual economic survey began 24 years ago, a very high percentage, 92.29% of survey respondents, have consistently agreed that creating employee ownership through an ESOP was “a good business decision that has helped the company.” It should be noted that this figure has been over 85% for the last 16 years the survey has been conducted. In addition, 76.72% of respondents indicated the ESOP positively affected the overall productivity of the employee owners. In terms of revenue and profitability — 77.69% of respondents noted that revenue increased and 68.94% of respondents reported that profitability increased. In terms of stock value, the majority of respondents, 82.93%, stated the company’s stock value increased as determined by outside independent valuations; 13.53% of the respondents reported a decline in share value; 3.55% reported no change. The survey also asked respondents what year the ESOP was established. Among those responding to this survey, the average age of the ESOP was 17 years with the average year for establishment being 1998.

“Having more Americans own productive assets is important, and it is imperative that broad-based employee stock ownership be front and center of our national debate over how to have more of our citizens own stock in our capitalistic society,” said Employee Ownership Foundation President, J. Michael Keeling. “As we’ve said before, research proves that ESOPs, and companies with other forms of broad-based employee ownership, provide more sustainable employment for U.S. workers. Our national leaders need to take note, step up, and encourage broad-based inclusive capitalism and increase employee ownership to ensure sustainable employment and more income for average pay employee owners. It’s the best jobs policy we have in this country.”

The survey asked companies to indicate their performance in 2014 relative to 2013:

  • 72.14% indicated a better performance; 14.55% indicated a worse performance; and 13.31% indicated a nearly identical performance to the previous year
  • 77.69% indicated revenue increased; 23.31% indicated revenue decreased
  • 68.94% indicated profitability increased; 31.06% indicated profitability decreased
  • 65.22% of companies have created an ESOP education program or ESOP advisory committee since establishing the ESOP

The 2015 Economic Performance Survey was distributed by the Employee Ownership Foundation to The ESOP Association’s nearly 1,600 members in June 2015. The results are based on 482 responses, a 30.13% response rate.

Summary of results from 2000 – 2015: EPS Summary 2000 – 2015

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The Employee Ownership Foundation is The ESOP Association’s affiliated 501 (c)(3) organization dedicated to promoting employee ownership – www.employeeownershipfoundation.org.

The ESOP Association is the national trade association for companies with employee stock ownership plans (ESOPs) and the leading voice in America for employee ownership. The core cause of The ESOP Association is the belief that employee ownership will improve American competitiveness, increase productivity through greater employee participation, and strengthen our free enterprise economy. More information: website – www.esopassociation.org and blog – www.esopassociationblog.org.

 

More Information:

Amy Gwiazdowski

202/293-2971

amy@esopassociation.org

@ESOPAssociation

June 2015 Roundup

It’s the last day of June so a monthly wrap-up it is!

Upcoming 2015 July events

Support for ESOPs

The June 2015 Washington Report from the ESOP Report

Welcome to new corporate members

We shared a pic of the 2015 Employee Ownership Month Poster Contest winner

Show your ownership spirit

The June 2015 ESOP Report was published

Registration is now open for the 2015 Employee Owner Retreat

Jobs remained stable in the employee stock ownership sector

ESOP advocates list

Spring Advocacy Kits

Dates announced for the 2015 Employee Owner Retreat

We noted how to access Issue Briefs and the Membership Directory on the website

Carris Reels beats the drum for ESOPs

July 2015 ESOP Calendar of Events

We have some great events happening in the next few weeks. Event info, registration, links, and contact information below.

Iowa/Nebraska Chapter – 10th Annual EOF Golf Outing and Roundtables (Ashland, NE)

July 16, 2015

Iowa/Nebraska Chapter
10th Annual Employee Ownership Foundation Golf Outing and Roundtables
Agenda & Registration
Quarry Oaks
Ashland, NE 68003
2015 Sponsorship Form-IA/NE
For more information contact Donna Walseth at dwalseth@esopexec.org or 763.785.4122
Leading in an Ownership Setting: The Program for CEOs – Part I (Philadelphia, PA)

July 26 – 31, 2015
Employee Ownership Foundation & University of Pennsylvania’s

School of Social Policy & Practice
University of Pennsylvania
Philadelphia, PA
Contact Rosemary Clements (202) 293-2971 or rose@esopassociation.org
Registration, Tuition & Hotel Information

 

Mid Atlantic Chapter – 2015 Breakfast Meeting (Springfield, VA)

July 28, 2015
Mid Atlantic Chapter
2015 Mid Atlantic Chapter Breakfast Meeting
HOSTED BY: Mid South Building Supply
7940 Woodruff Ct.
Springfield, VA 22151
Click to register

2015 Printable Registration Form MAC July Breakfast Meeting

For more information contact Shelly Dennis at sdennis@esopexec.org or via phone at 603.756.3441

Registration is now open for the 2015 Employee Owner Retreat!

Foundation

The Employee Owner Retreat is a course in capitalism for average pay employees that enhances each participant’s understanding of, and contribution to, her or his ESOP company. Faculty is from the Ohio Employee Ownership Center, which is affiliated with Kent State University. The Employee Owner Retreat is an educational program sponsored by the Employee Ownership Foundation.

August 13-15, 2015

Double Tree Suites-Downers Grove

2111 Butterfield Road

Downers Grove, Illinois  60515

Registration information is available on the website.

Questions: Contact Maya Van Buren 202/293-2971, meetings AT esopassociation.org or Chris Cooper at the Ohio Employee Ownership Center 330/672-0338, ccooper1 AT kent.edu.

 

RELEASE: Jobs Remain Stable in Employee Stock Ownership Sector of Economy

The Employee Ownership Foundation sent out the following release today.

Foundation

For Immediate Release: June 11, 2015

Jobs Remain Stable in Employee Stock Ownership Sector of Economy

June 11, 2015 (Washington, DC) – Highlighting new data from the most prestigious social survey in the U.S., the General Social Survey (GSS), the Employee Ownership Foundation today focused on convincing evidence that showed employees in the U.S. who had employee stock ownership were less likely to be laid off than employees without employee stock ownership.

The GSS — the 2014 GSS is funded primarily by the National Science Foundation and conducted by the National Opinion Research Center at the University of Chicago — found that 1.3% of employees with employee stock ownership, which includes the ESOP model and other forms of employee ownership, said that they were laid off in the last year compared to a 9.5% rate for employees without employee stock ownership.

Additionally, the survey found about 22.9 million U.S. citizens own stock in the companies in which they work.

“The 2014 GSS data demonstrates, as did the 2002, 2006, and 2010 surveys, that men and women in companies with broad-based employee stock ownership have more sustainable jobs than companies that are conventionally-owned,” said Employee Ownership Foundation President J. Michael Keeling. “Not to be dismissive of our national leaders who all claim to be the best at ‘job creation,’ it would seem to be equally important to promote vigorously national policies that result in more Americans keeping their jobs.”

The Employee Ownership Foundation provided significant funding for the GSS’s series of questions on shared capitalism. Shared capitalism is defined as broad-based employee, current or deferred stock compensation programs, such as ESOPs (employee stock ownership plans), stock purchases, stock options, gain sharing, profit sharing, and bonus programs. The shared capitalism series of questions were developed and analyzed by well-known employee ownership researchers, Dr. Joseph Blasi and Dr. Douglas Kruse at the School of Management and Labor Relations at Rutgers University and Dr. Richard Freeman at Harvard University. The researchers are continuing to analyze these and other related data from the Survey to shed light on the role of employee stock ownership in the U.S. economy.

“Not only do our national leaders, and think tanks, need to be considering a proven policy of job sustainability, but also given our nation’s growing concentration of wealth in the top 1% of our citizens, having more Americans own productive assets is important, and it is imperative that broad-based employee stock ownership be front and center of our national debate over how to have more of our citizens own stock in our capitalistic society,” Keeling added.

The Employee Ownership Foundation is The ESOP Association’s affiliated 501 (c)(3) organization dedicated to promoting employee ownership. More information: www.employeeownershipfoundation.org.

Founded in 1978, The ESOP Association is the national trade association for companies with employee stock ownership plans in America. The ESOP Association represents over 1,500 ESOP companies. More information: www.esopassociation.org and www.esopassociationblog.org.

More Information:

Amy Gwiazdowski

202/293-2971

amy@esopassociation.org

@ESOPAssociation

Dates Announced for the 2015 Employee Owner Retreat

Foundation

The Employee Owner Retreat is a course in capitalism for average pay employees that enhances each participant’s understanding of, and contribution to, her or his ESOP company. Faculty is from the Ohio Employee Ownership Center, which is affiliated with Kent State University. The Employee Owner Retreat is an educational program sponsored by the Employee Ownership Foundation.

August 13-15, 2015
Double Tree Suites-Downers Grove
2111 Butterfield Road
Downers Grove, Illinois  60515

Registration information will be available on the website soon.

Questions: Contact Maya Van Buren 202/293-2971, meetings AT esopassociation.org or Chris Cooper at the Ohio Employee Ownership Center 330/672-0338, ccooper1 AT kent.edu.

May 2015 Link Round Up

It’s June 1 it is which means this is your May news re-cap.

Leading in an Ownership Setting: The Program for CEOs

New Spring Advocacy Kit is available

We talked pro-ESOP legislation

We provided a legislative update on H.R. 2096 and S. 1212

May 2015 ESOP Report was published

We shared some talk about ESOPs

We talked ESOP company news

Dates were announced for the 2015 Employee Owner Retreat

S. 1212 was introduced in the Senate

Congrats to the 2015 ESOP Award & AACE Award winners

The 2015 Annual Conference App was announced

We connected at the Annual Conference with members

We announced new Chairs!