Archive for September 2016

What Do Employees Get Out of an ESOP?

Are your employees financially prepared for retirement? Many are not, as a result, they outlive their savings and have to depend on others in their old age.

In recognition of this reality, many owners of privately held companies choose to move toward an ESOP transaction as an exit strategy from their business instead of selling out, going public, or shutting down.

These thoughtful owners choose an ESOP because, among other reasons, it allows their valued employees to keep their jobs and over time, earn beneficial value in the company.

Looking to learn more about ESOPs? Thinking about moving your company toward the ESOP model? Contact an ESOP Lawyer, Advisor, or Consultant today at

But the benefits of an ESOP to the employees does not begin with retirement. There is something to be said for pride of ownership. Historically, companies that have taken the ESOP route have had better employee retention and satisfaction. Why? Simply put – the employee now has “skin in the game”.

Having worked over the years with ESOP companies and having examined the statistics surrounding companies that have adopted an ESOP model, I have discovered the following to be true.

  • Employees feel more in control of their own destiny because they have a stake in how their job impacts company value.
  • Employees (on average) make more money than their counterparts in publicly or privately-owned companies within the same vertical.
  • Employees bring a more trusting attitude with them to work in relation to management.
  • Employees tend to stay longer in their position because of the ESOP financial incentives.
  • Employees band together to work through the difficult times instead of abandoning the company and each other. This builds community and preserves their sweat-equity investment in the company.
  • Employees enjoy greater job satisfaction than their counterparts in other systems of corporate ownership.

Want better for your employees as you transition to a new phase in your business? Contact the ESOP professionals today at