Resources Hero DSC_2645

EPS Report Released

by Patrick Mirza | Oct 18, 2019
Results are now available from the 2019 Economic Performance Survey, a poll of ESOP Association corporate members.

Results are now available for the Economic Performance Survey (ESPS), the annual poll of The ESOP Association’s corporate members. This year’s results show continued positive performance for ESOP companies responding to the poll, as well as a few new insights.

For a segment of responding companies, corporate performance soared with profits reaching or exceeding 50 percent. The percentage of companies reporting that level of profitability this year reached an all time high, and marked the greatest year-over-year increase since we started asking this question four years ago. 

In other news, the survey delved more deeply into how involved employee owners are in managing costs. Among respondents, 75 percent said that employee owners are Somewhat or Very Involved in managing expenses.

That fits a trend we discovered last year and that continued this year: The percentage of companies with profits of 40 percent or more was significantly higher than those reporting comparable revenue. How is that possible? One explanation is if companies excel at wringing out profit by managing costs. This year’s data show that employee owners are playing an active role in this process.

Another insight from this year’s survey is that responding companies seem to have shifted their rewards to offering higher salaries for non-supervisory employee owners. Since this is only the second year we have asked for information about salaries, these findings are preliminary.

Even more important is the fact that large percentages of responding ESOP companies continue to offer wages and ESOP contributions that significantly exceed the national averages for both types of rewards.

All members of The ESOP Association are encouraged to download the report. The EPS is produced thanks to the support of the Employee Ownership Foundation