Employee Stock Ownership Plans (ESOPs)

2016

Powerful, under-used tool for reducing income-inequality: broad-based ownership

Marjorie Kelly
The Hill

In this article for The Hill, Democracy Collaborative Executive Vice President and Senior Fellow Marjorie Kelly describes the growing movement toward broad-based ownership and how communities are coming together to take control of their local economies. Kelly highlights some of the innovative strategies used by communities on the ground, such as the cooperative ownership business conversion, which is poised to achieve expanded scale in the near future:

2015

2014

2013

2012

2010

2009

2008

2007

2006

2005

The Perfect Perk

Bridget McCrea
Hispanic Trends.com

2004

2003

2002

Research Evidence on Prevalence and Effects of Employee Ownership

Douglas Kruse
Testimony before the Subcommittee on Employer-Employee Relations — Committee on Education and the Workforce

1958

n/a

2013

Macroeconomic Impact of S ESOPs on the U.S. Economy

Alex Brill

In this recent report, Alex Brill of Matrix Global Advisors quantifies the macroeconomic impact of S-corporation Employee Stock Ownership Plan (ESOP) companies in 2010. Using publicly available data from the Department of Labor, the report finds that S-corporation ESOP companies account for 1.4 million jobs, $77 billion in labor income, $246 billion in output and $27 billion in tax revenue nationwide. The author argues additionally that the structure of these ESOPs leads to greater firm longevity as well as higher wages, greater job stability, and increased retirement plan contributions. Furthermore, the report shows that S-corporation ESOP companies are more resilient in an economic downturn, resulting in positive impacts for workers, customers, neighborhoods, and local economies. 

The Impact of Employee Ownership and ESOPs on Layoffs and the Costs of Unemployment to the Federal Government

Corey Rosen

In a recent paper for the National Center for Employee Ownership, Corey Rosen finds that people who work for employee-owned companies are much less likely to be laid off than those who do not. Analyzing data from the 2010 General Social Survey, Rosen shows that 12.1 percent of all working adults in the private sector reported being laid off in the last year compared to just 2.6 percent of those respondents who says they own stock in their company through some kind of employee ownership plan. Rosen estimates that during that year the implied federal savings from the lower layoff rates of employee owners is $23.3 billion and that the implied savings for ESOPs and stock bonus plans alone is $13.7 billion.

2012

2011

2009

2008

2007

2006

2004

2003

Motivating Employee-Owners in ESOP Firms: Human Resource Policies and Company Performance

Douglas Kruse, Richard Freeman, Joseph Blasi, Robert Buchele, Adria Scharf, Loren Rodgers and Chris Mackin
Presented at panel on “Econometric Case studies of Human Resources and Firm Performance”

2000

1999

2016

Broad-Based Ownership Models as Tools for Job Creation and Community Development

Marjorie Kelly, Steve Dubb and Violeta Duncan

As cities wrestle with the growing challenge of wealth inequality, more and more leaders are looking to broad-based ownership models as tools to create jobs and build community wealth. These models are highly effective, with a positive impact for low- and moderate-income individuals and communities. This report looks at six such models—ESOPs, Worker Cooperatives, CDFIs, Social Enterprises, Municipal Ownership, and Emerging Hybrids—with examples of best practices, and explores how these models can be used in community economic development.

2015

2006

2002

2001

Powerful, under-used tool for reducing income-inequality: broad-based ownership

Marjorie Kelly
The Hill

In this article for The Hill, Democracy Collaborative Executive Vice President and Senior Fellow Marjorie Kelly describes the growing movement toward broad-based ownership and how communities are coming together to take control of their local economies. Kelly highlights some of the innovative strategies used by communities on the ground, such as the cooperative ownership business conversion, which is poised to achieve expanded scale in the near future:

The Perfect Perk

Bridget McCrea
Hispanic Trends.com

Research Evidence on Prevalence and Effects of Employee Ownership

Douglas Kruse
Testimony before the Subcommittee on Employer-Employee Relations — Committee on Education and the Workforce

In the Company of Owners

Joseph Blasi, Douglas Kruse and Aaron Bernstein

Macroeconomic Impact of S ESOPs on the U.S. Economy

Alex Brill

In this recent report, Alex Brill of Matrix Global Advisors quantifies the macroeconomic impact of S-corporation Employee Stock Ownership Plan (ESOP) companies in 2010. Using publicly available data from the Department of Labor, the report finds that S-corporation ESOP companies account for 1.4 million jobs, $77 billion in labor income, $246 billion in output and $27 billion in tax revenue nationwide. The author argues additionally that the structure of these ESOPs leads to greater firm longevity as well as higher wages, greater job stability, and increased retirement plan contributions. Furthermore, the report shows that S-corporation ESOP companies are more resilient in an economic downturn, resulting in positive impacts for workers, customers, neighborhoods, and local economies. 

The Impact of Employee Ownership and ESOPs on Layoffs and the Costs of Unemployment to the Federal Government

Corey Rosen

In a recent paper for the National Center for Employee Ownership, Corey Rosen finds that people who work for employee-owned companies are much less likely to be laid off than those who do not. Analyzing data from the 2010 General Social Survey, Rosen shows that 12.1 percent of all working adults in the private sector reported being laid off in the last year compared to just 2.6 percent of those respondents who says they own stock in their company through some kind of employee ownership plan. Rosen estimates that during that year the implied federal savings from the lower layoff rates of employee owners is $23.3 billion and that the implied savings for ESOPs and stock bonus plans alone is $13.7 billion.

Motivating Employee-Owners in ESOP Firms: Human Resource Policies and Company Performance

Douglas Kruse, Richard Freeman, Joseph Blasi, Robert Buchele, Adria Scharf, Loren Rodgers and Chris Mackin
Presented at panel on “Econometric Case studies of Human Resources and Firm Performance”

Broad-Based Ownership Models as Tools for Job Creation and Community Development

Marjorie Kelly, Steve Dubb and Violeta Duncan

As cities wrestle with the growing challenge of wealth inequality, more and more leaders are looking to broad-based ownership models as tools to create jobs and build community wealth. These models are highly effective, with a positive impact for low- and moderate-income individuals and communities. This report looks at six such models—ESOPs, Worker Cooperatives, CDFIs, Social Enterprises, Municipal Ownership, and Emerging Hybrids—with examples of best practices, and explores how these models can be used in community economic development.