Find Your Resource

MYTH #1: ESOPs are too risky for employees

Leveraged ESOP accounting can seem counterintuitive at times, especially on the balance sheet. In a presentation at the 2023 Annual Conference, Brian Sharkey of Kreischer Miller walked attendees through how the process works.

The biggest development in employee ownership covered in this newsletter is the release of new research by the NCEO and sponsored by ESCA.

Employee engagement has long been a core measure for how well a company is doing to create an enjoyable and high-performing organizational culture.

As we described in the January newsletter the number of participants in private ESOPs increased by 5.7% from 2014 to 2019 even as the number of plans decreased by 1.2% over the same period.

The total number of ESOPs has been in slow decline over the past several years, dropping from 7,138 plans in 2010 to 6,660 in 2016 (the most recent year for which reliable data is available from the Department of Labor).

When I first learned about employee-owned TVF, Inc., they were on the fast track to becoming one of the newest stewards of ESOP networking as a valuable member of the employee ownership community.

How companies take control premiums into account in the yearly ESOP valuation. 

Forecasts are an essential part of any business, especially in an ESOP because they are a major component of the annual valuation.