The Employee Ownership Foundation sent out the following release today on the results of the 22nd Annual Economic Performance Survey.
For Immediate Release: September 10, 2013
For More Information: Amy Gwiazdowski, 202/293-2971, amy AT esopassociation.org
ESOP Companies Report Economic Growth in 2012
September 10, 2013 (Washington, DC) – Results from the Employee Ownership Foundation’s 22nd Annual Economic Performance Survey of ESOP (employee stock ownership plan) companies show that ESOPs saw increased economic growth over the past year. Additionally, ESOP companies continue to have increased share value, report high productivity, and overwhelming support among leaders of the companies, according to the results of this survey which was conducted among members of The ESOP Association.
Since the annual survey began 22 years ago, a very large majority, 94% of survey respondents, reported that creating employee ownership through an ESOP was “a good business decision that has helped the company.” It should be noted this figure has consistently been over 85% since 2000. In addition, 77% of respondents indicated the ESOP positively affected the overall productivity of the employees. In terms of profitability and revenue, both were up from previous years — 70% of respondents reported profitability increased and 78% of respondents noted revenue increased. In terms of stock value, the majority of respondents, 83%, stated the company’s stock value increased as determined by outside independent valuations; 14% of the respondents reported a decline in share value, and 3% 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 16 years with the average year for establishment being 1997.
“Employees with employee stock ownership, including those with ESOPs, in general, have more sustainable employment. Our national leaders need to take note and understand that we need national policies to encourage employee stock ownership among working Americans. It’s the best jobs policy we have,” said Employee Ownership Foundation President, J. Michael Keeling.
The survey asked companies to indicate their performance in 2012 relative to 2011:
- 71% indicated a better performance; 17% indicated a worse performance; and 12% indicated a nearly identical performance to the previous year
- 78% indicated revenue increased; 22% indicated revenue decreased
- 70% indicated profitability increased; 30% indicated profitability decreased
- 64% of companies have created an ESOP education program or ESOP advisory committee since establishing the ESOP
The 2013 Economic Performance Survey was distributed to The ESOP Association’s over 1,500 members in June 2013. The results are based on 495 responses, a 35% response rate.
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.