November 2, 2018
ESOP Association Releases Report on Company Performance
186 ESOP companies that are members of the ESOP Association responded to a questionnaire in September 2018 about key measures of their performance. The results, released in its 2018 ESOP Economic Performance Report, include:
- 55% of responding companies make ESOP contributions in the most recent plan year equal to 11% or more of covered payroll; 17% make contributions over 20% of covered payroll.
- 75% of responding companies increased wages for "production and non-supervisory employees" by 3% or more during the prior year.
- 86% say that having an ESOP had a positive effect on their corporate culture, and 95% say implementing the ESOP was a good decision.
- 80% of respondents said that their stock value increased in 2017, versus 12% that saw a decrease.
The research, part of a project that began in 2000, was funded by the Employee Ownership Foundation.