1. Increased Employee Wealth
- Employee-owners have 2.5x more assets in their retirement accounts and 20% more assets overall
- Average employee-owned company contributed $4,443 to each individual’s account annually, while traditional companies contributed $2,533
- Median hourly wage at employee-owned companies is 5-12% higher
- Default rate on loans to ESOPs is 0.2% while comparable companies are 2-3.75%
2. Stable, Meaningful Employment
- During the Great Recession, employee- owned companies laid off 12%.
- Employee owners are 40-50% less likely to say they will be looking for a new job next year.
- Employee owned companies had 25% higher job growth than comparable companies over a 10-year period.
3. Successful Exit for Owner
- Sellers defer capital gains on proceeds from sale.
- Sellers receive an independent, fair market valuation for their company.
- Sellers are able to sell company in a way that aligns with their values.
- 94% of company’s believe creating employee- ownership was “a good business decision that has helped the company”.