ESOP Basics: When Employee Ownership Makes Sense

Source: Ohio Employee Ownership Center, Kent State University
Year: 2009
Number of pages: 3

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Abstract:

The number of Employee Stock Ownership Plans (ESOPs) in the United States has increased from approximately 200 employing 250,000 workers in 1974 to over 11,000 established ESOPs in 2005 covering an estimated 11 million employees. This dramatic increase is due in large part to the implementation of ESOPs as: a competitiveness strategy, a business succession plan, a strategy for tax-advantaged corporate financing and a means to avert a plant shutdown.