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This article is based on a presentation by Dan Markowitz of Boulay LLP and an NCEO board member.

The NCEO is one of the only sources of compensation data focused exclusively on employee stock ownership plans (ESOPs). This year, the NCEO gathered comprehensive data from ESOP companies on both executive compensation and board director compensation, along with board makeup and demographic questions. From August 2023 to September 2023, 383 valid responses were received. All respondents are privately held companies with an ESOP. Most are S corporations (92%) and 86% are 100% ESOP-owned.

By Jeremy Huish, Capstone Headwaters

By Daniel Goldstein, CEO, Folience Time is the enemy of all deals. Because of that, as an acquisition is being pursued, both sides are likely laser-focusing their time and energy on getting the deal to close.

In recent years, ESOP companies have been on an acquisition binge, with more companies being acquired by ESOPs than there are new ESOPs. A growing number of ESOP companies are now organized as holding companies to do this.

After several years of progress on drastically improving their communications, ownership culture initiatives, and getting the direct involvement of frontline employees in this process, ESOP-owned Acuity Healthcare was hit with their biggest challenge yet.

The NCEO recently conducted an employee survey for a medium-sized ESOP companies as part of its Ownership Culture Surveys Networking Program.

The tax provisions of the Biden administration’s American Families Plan would provide a substantial, if unintentional, boost to employee stock ownership plans (ESOPs).

ESOP transactions are usually described in very general terms, but it can often help to walk through a specific and fairly complex one.

There are many paths to becoming an employee-owned company, but one of the most common is also one of the least talked about: companies becoming employee-owned by being acquired by a company that already is employee-owned.