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.
The ESOP Association
ESOP Association Resources
ESOP Blog, Resource
Jan. 17
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!
How much better? Try 235 percent better!
ESOP Blog, Resource
Jan. 03
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.
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.