April 24, 2013
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On April 17, Senator Ben Cardin (D-MD) and Senator Pat Roberts (R-KS) introduced bipartisan legislation based on a survey released by the Employee Benefit Research Institute stating that 28% of Americans worry that they won’t have enough money to retire. According to Cardin and Roberts, Employee Ownership offers a sound solution to this problem.
Far too many Americans are inadequately prepared for retirement. Our legislation is about helping workers save by giving businesses the tools they need to create jobs and promote adequate retirement savings. It will strengthen a structure that promotes employee-ownership and helps workers build secure retirements…
-Senator Ben Cardin
Alex Brill of the American Enterprise Institute and CEO of Matrix Global Advisors, argues that employee stock ownership plans have higher productivity and resilience. The bill introduced by Roberts and Cardin would encourage the formation of S-Corp ESOPs, because this type of ESOP has been particularly successful in terms of longevity, wages, and growth.
S ESOPs have also proven more resilient in the face of economic distress, outperforming other private U.S. employers during the recent recession.
Among the positive impacts of an S ESOP according to Brill are $77 billion in labor income, $246 billion in output, and $27 billion in tax revenue from 1.4 million jobs. More details on the Brill’s research can be found in his study, Macroeconimic Impact of S ESOPs on the U.S. Economy.
More information on the proposed bill, Promotion and Expansion of Private Employee Ownership Act of 2013 (S. 742):
June 18, 2012
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This article appeared in the New South Chapter of the ESOP Association quarterly newsletter and was shared by Bradley Arant Boult Cummings LLP.
When considering, creating and administering an ESOP, there are some important issues that should be considered including valuation, diversification, the role of employee owners, and debt services.
Regardless of how an ESOP is used, there are some unique concerns that plan sponsors, trustees, and other fiduciaries of such plans should consider in connection with the creation and ongoing administration of the ESOP.
Read the entire article here.
June 13, 2012
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The ESOP Association’s annual Employee Owner Retreat will be held in Downers Grove near Chicago, Illinois August 9-11, 2012.
The Retreat is a three-day, off-site training seminar, staffed by the Ohio Employee Ownership Center, where non-managerial employee owners learn from and interact with their peers from other ESOP companies. The program, geared toward hourly and salaried non-managerial employees, will help participants develop team problem solving skills, become more knowledgeable about ESOPs and company financial statements, and gain a new perspective on employee ownership at their companies through structured exercises and informal discussions.
For more information, click here.
June 4, 2012
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This interesting article appeared recently on the Economic Intelligence Blog of U.S. News explaining how Employee-Owned businesses are the key to a “more robust and sustainable economy.”
The article focuses on the success of John Lewis Partnership in England. A company that is 100% owned by its 81,000 employees, and boasted a $13.7 billion in 2011 revenues. While remaining profitable during the Great recession, the company also managed to provide fair compensation and give employees control over the business through a “generative ownership” model. U.S. companies likewise benefit from employee ownership, often out performing similar non employee-owned businesses with “lower staff turnover, higher trust, and greater shareholder value.”
Ohio’s Employee-Owned Network (a program of the OEOC) is sponsoring a CEO/CFO Forum & Dinner for leaders in employee-owned companies on Wednesday, May 16, 5:30 P.M. – 8:30 P.M. in Ashtabula. The Forum and Dinner is being hosted by Ric Selip, CEO, and Donny Chaplin, Vice President of Grand River Rubber and Plastics. The Dinner portion of the program is being held at the facilities of the Spire Institute in nearby Geneva, OH.
In addition to the Forum and Dinner, there is a 4:30 P.M. tour of the Grand River facility.
For questions, email Jay Simecek or call the OEOC at 330-672-3028.
The Foundation for Enterprise Development has released the trailer for their new film on employee ownership. Titled “We The Owners: Employees Expanding the American Dream” the film follows three differently structured employee-owned companies as they create a stakeholder economy based on ‘prosperity through ownership’. And, in a publishing coup, the OEOC can preview a few stills from the film:
The purpose of the film is more than entertainment. In conversations with your humble scribe, Executive Producer Mary Ann Beyster expressed the additional goal that the film be a tool for broadening the discussion and teaching of the concept of employee ownership in the nation’s universities and MBA programs (a goal that we at the OEOC certainly applaud and support).
Scheduled for release in Summer 2012, you can view the trailer at the site linked above or on YouTube.
The Foundation for Enterprise Development was founded in 1986 by Dr. J. Robert Beyster. The Foundation’s mission is to promote broad-based employee ownership and entrepreneurism.
April 4, 2012
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If you’re interested in learning “a better way of doing business,” we invite you to attend the 26th Annual Ohio Employee Ownership Conference. The conference, titled Employee Ownership: A Better Way of Doing Business, will take place April 20 in Akron, Ohio, and will feature keynote speaker Joseph Blasi.
Joseph Blasi is a professor at the School of Management and Labor Relations at Rutgers University where he was named to the post of Robert J. Beyster Professorship of Employee Ownership.
Attendees will have the opportunity to learn about various aspects of employee ownership, and meet with other network members. If you’re interested in attending you can register and find more information on the OEOC Website.
We hope to see you this April in Akron!
November 4, 2011
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I thought I would let all of you know about some of the more interesting stories I’ve read over the last week from the world of employee ownership.
First up are a couple of stories from two officers from separate employee-owned companies who both stress that employee ownership is good business, and a great way to support the retirement savings of workers:
Greg Klein, CFO and Vice-President of Inland Truck Parts from the Des Moines Register
Mike Heitmann, President and CEO of Garney Construction from the Kansas City Star
Next up is an article from the Financial News & Daily Record newspaper (based in Jacksonville Florida) on the power of “ownership thinking.”
And finally, from the other other side of the world (specifically from the Sydney [Australia] Morning Herald) comes an interesting piece on how the “us-vs-them workplace is just bad business”.
I think the common theme among all the pieces is the idea of when you allow workers to share in the risk and rewards of operating a business, the end results tend to be positive.
September 22, 2011
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A group of North American cooperative organizations are hosting a conference on business succession planning and employee ownership in Quebec City from October 11-13. Roy Messing from the OEOC will be participating in a number of events during the 3 days.
Interested? Find out more here.