Using opportunity cost to understand the true cost of the repurchase obligation on an ESOP company’s share price.
The ESOP Association
ESOP Association Resources
ESOP Brief, Repurchase Obligation, Opportunity Cost, New Present Value, Redeem, Recycle, Resource
Feb. 25
ESOP Brief, Repurchase Obligation, Redeem, Recycle, Opportunity Cost, Resource
Dec. 20
This ESOP Brief introduces the concept of opportunity cost and the implications for share price when private companies devote resources to fund repurchase obligations.
Program Research
While gaining an ownership stake in one’s place of employment is an obvious benefit, research is showing that employee owned companies also invest in their employees through training at a much higher rate than other businesses. Workers, especially the rising millennial generation, consistently cite job training and skills development as a key driver for job satisfaction and longevity in a position.