As the Employee Ownership Foundation Reaches New Heights, Your Support Matters More Than Ever

As we head into September, ESOPs across America begin to gear up in earnest for October and Employee Ownership Month. It’s always heartening to see the energy and enthusiasm on display during EOM, as our community celebrates the unique and unifying spirit of employee ownership. This year, we certainly have a lot to celebrate. 
 

We’ve been seeing growth in ESOPs and especially in the number of employee owners in the U.S., as ESOP companies have been more active in expanding through M&A and acquiring non-ESOP businesses. And although the Department of Labor continues its process of drafting a proposed rule for adequate consideration, there is a clear sentiment in Congress and in the White House that government must take steps to make it easier for businesses to become employee owned. 
 

We are also hitting a major milestone this year, as September 2nd marks the 50th anniversary of the Employee Retirement Income Security Act (ERISA) and the creation of the modern ESOP. While it’s true ERISA is far from perfect, the law has helped countless millions of Americans retire with dignity and security, while creating important standards that all employer-sponsored plans, including ESOPs, must adhere to in order to safeguard employees’ retirement benefits. 
 

ERISA was a breakthrough for employees, and in a sign of how important the legislation was, its final passage was unanimous in the Senate (85-0) and nearly unanimous in the House (407-2). And since ERISA was enacted, many subsequent reforms to ERISA and pension/retirement security legislation have also been bipartisan. We’ve seen this trend continue recently, when the WORK Act was enacted with strong bipartisan leadership. Relating to ESOPs specifically, many Democrats and Republicans have voiced their concerns about adequate consideration with the Department of Labor, urging the DOL and EBSA to create a fair and transparent rule that will encourage the formation of more ESOPs.
 

The Foundation’s mission is quite simple: to grow employee ownership in America and help more individuals reap its benefits. To accomplish this on a large scale, we must continue educating policymakers, key stakeholders, and the public that employee ownership is the right choice for businesses, for workers, and for our economy. 
 

One of the ways the Foundation raises awareness of employee ownership is through sponsoring academic research, with partners like the Institute for the Study of Employee Ownership and Profit Sharing at Rutgers University, at Pepperdine University, and at Kellogg College at Oxford University. This kind of research generates extremely valuable data on employee ownership and helps to empirically validate what we already know: such as employee ownership leads to increased productivity, more stable local economies, happier and more engaged workers, and that employee ownership is helping to reduce the wealth gap in America and increase retirement security.
 

Another way the Foundation is helping grow employee ownership is through international events, like the Oxford Symposium on Employee Ownership in the United Kingdom. Earlier this month, the EOF was the lead sponsor and convenor of the Oxford Symposium for the third consecutive year. In addition to bringing together global thought leaders to discuss barriers and solutions for expanding employee ownership, the Symposium is also a way for key Congressional staff to become better educated about our core issues. For the last three years, the Foundation has sponsored Congressionally sanctioned travel for senior House and Senate staff to attend the Symposium, where they can hear first-hand how employee ownership is changing the lives of millions of individuals fortunate enough to work for an ESOP or EO company.
 

In addition to policymaker education, the growth of the Foundation over the last several years has also enabled us to expand our programming to directly benefit employee owners. For example, last year the Foundation launched the extremely popular ESOP Employee Accelerator, a full-day program geared toward non-management and new employee owners, to provide them with core fundamentals of business and ESOPs. 
 

Last year, the Foundation also launched the inaugural Trustee Scholars program, offering two scholarships each year worth up to $20,000 to help children of employee owners pay for college or a trade school. We were overwhelmed by both the quantity and the quality of the applications we received and are proud that this new program has been so well received in our community. For those interested in applying for the 2025 scholarships, we will be sending posters and other information to our members in time for Employee Ownership Month
 

In 2024, the Foundation also had a record number of applications for the Charles R. Edmunson scholarship program, which awards $2,000 scholarships to non-management employee owners to attend motivational or educational programs that promote employee ownership. This year, we will be awarding 15 Edmunson scholarships, more than ever before.
 

The Employee Ownership Foundation can achieve these successes thanks to your generosity. And while the EOF has had a great impact on our members, on policymakers, and on the general public, there’s so much more to do. 
 

This year, as your ESOP plans activities for Employee Ownership Month, please consider incorporating events that support ESOPATHON, our annual fundraising drive during EOM in October. It’s fun, it’s easy to participate, and it’s for a very worthy cause: supporting the future of employee ownership in America.