When Your Friends Aren’t Your Friends

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It would be easy for us to sit back and bask in the comfortable knowledge that the Congressional tax committees did not draft tax reform measures that negatively affect ESOPs.

Certainly, that is good news. But we can’t let that recent success cause us to remain ignorant of the fact there remain plenty of people who do not believe in the things that we believe—that ESOPs are good for our nation, our companies, and employees.

Sometimes that dislike for ESOPs can be harder to spot, because it is hidden under an apparent love for different forms of employee ownership.

When Your Friends Aren’t Your Friends

EO Firms Dramatically Better at Retention

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For some time now, the data have shown that businesses with employee stock ownership are clearly better than conventionally owned companies at retaining employees. But new insights gleaned from existing research data show that, over a period of 12 years, businesses with employee stock ownership have gotten increasingly and dramatically better than conventionally owned firms at retaining employees.

How much better? Try 235 percent better!

EO Firms Dramatically Better at Retention

Not Everyone Loves ESOPs

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I am hearing increasingly from certain thought leaders that current ESOP laws do not create “good” employee ownership plans.

Anytime we ESOP advocates encounter someone who takes such a view of ESOPs, we need to ask ourselves, “Why does that person think ESOPs are not good employee ownership plans?” When we know the answer, we can counter the ESOP cynic’s point of view.

In my experience, there are three main criticisms of ESOPs. I’ll deal with each one in a separate blog post.

The first criticism maintains that ESOPs are bad retirement plans.

Not Everyone Loves ESOPs

Not Everyone Loves ESOPs (Part II)

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I often hear three criticisms about ESOPs: The second criticism is that ESOPs are a waste of taxpayers’ money.

Cynics say the tax breaks provided to ESOPs are money losers because the majority of American taxpayers pay higher rates to make up for the cost of ESOP tax benefits.

But anyone who says that must not have done very well in elementary school when they learned basic math. ESOPs offer great returns on tax incentives.

Not Everyone Loves ESOPs (Part II)

Not Everyone Loves ESOPs (Part III)

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In this, our final installment on common criticisms of ESOPs—and why they are wrong—we’ll look at the assertion that ESOPs are not real ownership.

According to cynics, ESOPs are “fake” ownership plans. In “real” ownership, they argue, the owners control their assets by determining such things as who runs the company, who sits on the Board of Directors, when major corporate decisions are made that might impact the future of the company, and so on.

But ESOPs are true ownership.

Not Everyone Loves ESOPs (Part III)

Helping Employees Own Health and Wellness

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Most businesses wrestle with their health care costs. Being an ESOP does not make us immune to this challenge.

Travel and Transport is a 1,400-person company with offices from Boston to Seattle. We have a self-insured health plan in which approximately two thirds of our employee owners participate. Our plan has run large deficits the past several years and, as a result, we are in the midst of making some major changes.

Helping Employees Own Health and Wellness

Using Social Media to Promote Ownership Culture

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At Entertainment Partners, with our 1,100 employee owners spread out across more than 10 locations nationwide, we rely heavily on technology to help us communicate and connect with each other. To us, “social media” encompasses any technology that enables us to create and share content and make those connections. It could be software specifically geared toward fostering collaboration in the workplace or it could be the same website you use to share hilarious cat videos or that perfectly angled selfie.

Using Social Media to Promote Ownership Culture

Aspen Institute Holds Employee Ownership Event

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On May 10, the prestigious Aspen Institute held a panel discussion on employee ownership that was attended by individuals and groups involved in policy making and thought leadership. The ESOP Association assisted in gathering potential speakers.

The event featured a visit from Rep. Erik Paulsen (R-MN), and a four-person panel representing corporate members of The ESOP Association. The panelists included:

Aspen Institute Holds Employee Ownership Event

On the Hook for Saving America’s Cod Industry

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Why Employee Ownership Was The Right Choice for America

What do Independence Day, ESOPs, and fishing have in common? More than you might think.

During the Revolutionary War, the British attempted to wipe out America’s Cod fleet because it was a critical part of our economy and a source of able hands for America’s growing Navy. Those efforts left the industry crippled for years after the last musket was fired in Yorktown.

On the Hook for Saving America’s Cod Industry