Why ESOPs Are Becoming More Popular Among Architecture and Engineering Firms

Why ESOPs Are Becoming More Popular Among Architecture and Engineering Firms by Blake Head an ESOP Advisor.

Every year, the National Center for Employee Ownership (NCEO) publishes a list of the nation’s 100 largest employee-owned companies. In 2020, architecture and engineering (A&E) firms accounted for 17 of these companies making the industry one of the most prominent on the list. Over 80% of those A&E firms utilize an Employee Stock Ownership Plan (ESOP) to achieve broad employee ownership, as opposed to other employee ownership options, such as worker cooperatives. An ESOP is a unique ownership transition tool that allocates a firm’s stock to employees over time, capturing value attributable to future growth, motivating employees and empowering them to think like owners.

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