Employee Ownership Resources
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EOX works to expand employee ownership across the US by creating and supporting a network of non-profit state centers for employee ownership.
The National Center for Employee Ownership (NCEO) reports that the most common structure for broad-based employee ownership in the U.S. is the ESOP.
Employee Ownership - BY THE NUMBERS
ESOPs cover 14.7 million participants, of whom over 10.7 million are active participants—those currently employed and covered by an ESOP. - NCEO / National Center for Employee Ownership
Industries of Privately Held ESOP Companies
Top 10 ESOP Advantages
According to NCEO / National Center for Employee Ownership
- Advantage #1
Owners Selling to a C corporation ESOP can indefinitely defer taxation, unlike non-ESOP sales
- Advantage #2
Owners can sell any amount to an ESOP; most non-ESOP buyers only want to buy 100% of the company
- Advantage #3
If there are multiple owners, an ESOP can buy from only one; non-ESOP buyers usually want everyone to sell so they are the sole owner
- Advantage #4
Owners can sell to the ESOP at their own pace over a period of years and retain a role at the company
- Advantage #5
Only an ESOP can use pretax dollars to buy out owners; other buyers would use after-tax dollars
- Advantage #6
An S corporation ESOP shields the company from taxes (the ESOP is tax-exempt, with no taxes to fund)
- Advantage #7
The company retains its identity after the sale, whereas a non-ESOP sale may destroy the owner's legacy
- Advantage #8
The employees who helped build the company can now be rewarded through ESOP ownership
- Advantage #9
ESOPs can improve corporate performance when combined with high-involvement work cultures
- Advantage #10
ESOPs add to employee retirement security, from preserving jobs to enhancing retirement assets