In a commentary for CNBC, Former New Hampshire Senator John Sununu penned a strong endorsement of employee ownership generally, and ESOPs specifically.
“Ownership in a business gives workers a physical stake in their company, allowing them to benefit directly from their own efforts, and particularly from improvements in competitiveness and performance,” Sununu wrote.
Sununu distinguishes between forms of compensation that don’t truly provide ownership, and those that offer a genuine piece of the pie.
“Ownership is not profit-sharing or bonuses,” he writes. “It’s a true stake in success, and employee stock ownership plans (ESOPs) stand out as a unique model that deliver benefits for both businesses and employees.”
Sununu cites recent research showing how ESOPs have fared well in tough economic times, and have often outperformed conventionally-owned businesses.
Americans used to be proud of their businesses, he states. And adds that: “ESOPs just might be enough to make Americans fall in love with business all over again.”