Recent research by Brent Kramer, a doctoral candidate at the City University of New York, “provides strong evidence that majority employee-owned businesses have a significant advantage over comparable traditionally-owned businesses in sales per employee.” The average advantage, $44,500, means that a typical 200 person ESOP firm could be expected to have an almost $9 million annual sales advantage over its non-ESOP counterpart. Sales per employee is the total of a company’s...
We’ve discussed communications programs before in this space but as a follow up to the AACE Awards posting a few weeks ago, we thought it might be a good time to bring it up again. The AACE Awards recognize the outstanding communications programs of ESOP Association members. (If you would like more information about the program, visit the Association’s website http://www.esopassociation.org/resources/resources_AACE.asp.) Every entry exemplifies the commitment...
Below are a few of the letters to the editor that members of The ESOP Association shared with the Association. We know many people sent letters and we appreciate their efforts. Below is just sampling of what was shared with the Association. If you would like to read The New York Times article it can be found here - http://www.nytimes.com/2008/05/29/business/29sugar.html?_r=1&scp=1&sq=us+sugar&st=nyt&oref=slogin. __________ Dear Editor: The...
We bring your attention to a front page, long, very negative article on ESOPs in the May 29, 2008 edition of The New York Times, page 1, jump page A23, online -http://www.nytimes.com/2008/05/29/business/29sugar.html?_r=1&hp&oref=slogin This story is potentially the most damaging we have seen for a very long time. ESOP Association President, J. Michael Keeling sent a letter the editor, which is posted below. The article states that “employees are being cheated...
When the oldest ESOP companies were ten years old at best in the mid-80s, or even 15 years old in the early 90s, the word “sustainability” was not in the lexicon of the ESOP community. Beginning about four to five years ago at The ESOP Association’s New England Chapter meetings that were retreats for Board members, or CEOs of New England ESOP companies, several participants were surprised when other business leaders put this topic on the table—why are so many ESOPs...
The Employee Ownership Foundation and the Foundation for Enterprise Development Fund Aspen Institute’s Work on Broad Dissemination of Employee Ownership Teaching Materials to Business Educators The Aspen Institute is an international nonprofit organization dedicated to fostering enlightened leadership and open-minded dialogue. As part of the Institute’s Business and Society Program, the Center for Business Education (CBE) maintains close ties with major MBA programs in 23...
While the AACE (Annual Awards for Communications Excellence) Awards are primarily an ESOP Association program, we did want to take a minute to congratulate this year’s winners on a job well done. Category 1-A, Total Communications Program, 100 or fewer employees Winner: Sebago Technics, Inc., Westbrook, ME Runner Up: Worm’s Way, Inc., Bloomington, IN Category 1-B, Total Communications Program, 101 - 500 employees Winner: MidSouth Building Supply, Inc., Springfield,...
The 2008 AACE Award winners will once again be featured at The ESOP Association’s Annual Conference in Washington, DC, May 13 & 14, 2008. There’s no better way to understand a communications program than to talk to the people who run them. If your company is looking for ways to increase communications or to get employee owners involved, the AACE Awards could be your answer. The Annual Conference features a large exhibit of the AACE entries which are available...
The ESOP Association Applauds Introduction of Resolution Supporting Employee Ownership through ESOPs by Congressmen Maurice Hinchey and Dana Rohrabacher Congressmen Maurice Hinchey (D-NY) and Dana Rohrabacher (R-CA) introduced on April 24, 2008 House Concurrent Resolution 333, which expresses continued support for employee stock ownership plans (ESOPs) in the U.S. J. Michael Keeling, President of The ESOP Association, had this to say about the Resolution: “I welcome the...
Earlier this month, The ESOP Association presented 129 corporate members of the Association with a Silver ESOP Award to recognize their work in sustaining their ESOP for 25 years or more. J. Michael Keeling, President of The ESOP Association stated, “I am very pleased to be able to present these companies with the Silver ESOP Award for their work to sustain their ESOP. We are working with our members to promote the ideals of employee ownership and to increase the number...
Now is the time to act! The ESOP Promotion and Improvement Act of 2007 was introduced earlier this year by Senator Blanche Lincoln (D) of Arkansas. Now is the time to contact your Senators and talk to them about this legislation. In light of the legislation introduced by Representative Charles Rangel, now is the time to reach out to your member of Congress. Contact their office and ask to arrange a visit to your company. If you can’t arrange a visit...
This article originally ran as the Washington Report column in the March 2008 issue of the ESOP Report. We thought it was worth a reprint on the Employee Ownership Blog. It has been edited for space but the message is the same. For several months after the publication of the tax reform legislation introduced by the Chair of the House Ways and Means Committee Charles Rangel [D-NY] it seemed many ESOP company leaders felt its small provision on S ESOPs was not of any concern. There...
The 2007 Economic Performance Survey which was conducted by the Employee Ownership Foundation asked members of The ESOP Association this question about productivity - How has the ESOP affected overall productivity of employees? 68% of individuals that responded to the question said it increased productivity. In fact, this number has remained over 58% since 2000. Need less to say, this is not a scientific survey and is certainly only a sampling of ESOP companies but to say that...
Well, once again, Enron comparisons are running rampant. As you have probably heard, Bear Stearns, which is in the process of being acquired by JP Morgan Chase, had an ESOP. Bear Stearns' stock ownership among employees was no where near the level of Enron (estimates put the size of the ESOP around 3%), employees had much diversification in their primary retirement plan, a 401(k) plan, and the stock ownership was primarily among the top executives and senior executives. However,...
For many companies, every day is spent trying to decide how to properly market the company to customers, potential customers, employees, and shareholders. If you’re an employee owned company, does it change they way you describe your company? Does it change your advertising or marketing practices? In 2005, the ESOP Company Survey, which was done jointly by The ESOP Association and the Employee Ownership Foundation, asked companies if they advertise the fact they are employee...
In employee ownership circles, the term Open Book Management (OBM) is often discussed and there are numerous companies that incorporate the practice and theories into their workplaces. The theory behind OBM is that all employees are provided information on the financials so they can and, hopefully, will make better and more informed decisions as workers and in the case of an ESOP company, as owners. The employees are also provided with training so they can properly read and understand...
The ESOP Association recently released a new video, “Creating a High Performing Company,” and one of the topics discussed in the video is motivational techniques. Some companies offer prizes and gifts, and in the case of one company, a flat screen television for the person who suggested an improvement in a manufacturing process that saved the company money. Some companies recognize the work and contributions of employee owners at meetings, in company newsletters,...
Why aren’t we doing the same thing? According to the European Federation of Employee Share Ownership, the British Parliament has set up an “All Party Parliamentary Group on Employee Ownership” which will study employee ownership practices in the co-owned business sector. The group defines co-owned businesses as companies which own anything from a substantial minority to a controlling stake in the business. The group is seeking evidence on the following: productive...
It all comes down to dos and don’ts. Some do it, some don’t. But is there a happy medium? Is it important for employee owners to know the bottom line? Obviously handing a packet of financial information to a person will not help increase his or her interest level nor will it make him or her a more motivated worker. If he of she is like most people, they probably won’t have any idea as to what they are looking at. If a company is planning...
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