BY MILES WEIS
AVP, EXECUTIVE RISK PRACTICE LEADER
You’ve likely heard the phrase “What happens in Vegas stays in Vegas!” Well, when it comes to me and what I’m about to talk about in this blog, that phrase doesn’t ring true. In fact, I’m actually eager to tell you about my trip! Why? Because I have some great information for you about ESOPs. If you’re scratching your head, that stands for Employee Stock Ownership Plan. If you’re interested in learning the ins and outs of ESOPs, check out my previous blog.
Back to Vegas. I was there recently for what turned out to be an energizing and informative ESOP Association national convention. It was great to see the ESOP community embracing growth for its companies and their employee owners, and it was eye opening to me how much information sharing goes on and how these ESOP companies truly want to get better and help each other maximize their chosen ownership structure.
To back this up even further, the latest edition of the ESOP Association’s Economic Performance Survey (EPS) shows that, once again, companies belonging to the ESOP Association have experienced positive corporate performance. Not only are they outperforming their conventional ownership peers, they’re doing so while returning more to their respective employee owners. Sounds pretty great, right?
In addition to that:
75 percent of responding companies increased wages at or above the national average of 2.7 percent, and 29 percent increased wages by 4 percent or more.
55 percent of responding companies contributed to their ESOPs an amount equivalent to 11 percent or more of their employee owners’ pay — far surpassing the typical 401(k) match.
What’s not to love about that?!
As members of the ESOP Association and National Center for Employee Ownership (NCEO), Holmes Murphy knows ESOPs. We’re employee-owned, with more than 100 employee owners! We pride ourselves on our culture and employee engagement, empowerment, and experience, and we take pride in making our communities better while rewarding those who contribute to the company. What it boils down to is culture truly is king with employee-owned companies.
If you’re thinking about taking a step toward an ESOP, we’d love to talk with you. Like I said, we’re well-versed when it comes to ESOPs and would be happy to answer any questions you may have or help you weigh the pros and cons for your company!