PLANADVISER - November/December 2019 - 42
beyond(k)
Employee-Owned
L
oren Rodgers, executive director of
the National Center for Employee
Ownership (NCEO) in San Francisco,
says there are a few ways to look
at the value of employee stock ownership
plans (ESOPs). While there are
different types of ESOPs-e.g., some
are open to all employees-the general
premise is that the employer sets up a
mechanism to grant shares of equity
ownership to workers as a form of
compensation.
As Rodgers observes, several
decades of academic and commercial
research have clearly established, especially
among privately held companies,
a direct benefit to employee ownership
in terms of better productivity, sales
growth, and staff retention and loyalty.
" Of course, this is on average, "
Rodgers notes. " Any company can have
a bad patch, and employee ownership
doesn't bulletproof anyone against
negative outcomes. Still, generally
speaking, there is really good data
showing the positive impact of ESOPs
on employees and companies. At the
very least, employees gain a deeper
connection and loyalty to their company-a
sense of stewardship over the
company's future. "
According to Rodgers, the NCEO
has thousands of members, spanning
all sectors of the economy. While some
business sectors with relatively high
employee turnover may not make great
ESOP candidates, most other businesses
will. These include financial services
firms such as retirement-focused independent
registered investment advisers
(RIAs) and wealth managers.
A Case Study
One advisory firm that has leveraged
the ESOP structure is Ellwood Associates,
headquartered in Chicago. The
firm was founded in 1977.
" The story of our ESOP goes back
pretty far, " says Aaron Ward, a managing
director and senior consultant
with the firm. " In 1999, [our] founder,
Advisory practices can be good candidates for ESOPs
42 | planadviser.com November-December 2019
Art by Doris Liou
http://www.planadviserdigital.com/planadviser/november_december_2019/TrackLink.action?pageName=42&exitLink=http%3A%2F%2Fplanadviser.com
PLANADVISER - November/December 2019
Table of Contents for the Digital Edition of PLANADVISER - November/December 2019
Foul Weather Fund
2019 PLANADVISER Practice Benchmarking Survey
Streamlining the Process
To Surmount the Gender Gap
NQDC Guidance
Employee-Owned
Continued Growth
The Extent of Obligation
Cyberfraud
How to Protect Participant Data
PLANADVISER - November/December 2019 - C1
PLANADVISER - November/December 2019 - FC1
PLANADVISER - November/December 2019 - FC2
PLANADVISER - November/December 2019 - C2
PLANADVISER - November/December 2019 - 1
PLANADVISER - November/December 2019 - 2
PLANADVISER - November/December 2019 - 3
PLANADVISER - November/December 2019 - 4
PLANADVISER - November/December 2019 - 5
PLANADVISER - November/December 2019 - 6
PLANADVISER - November/December 2019 - 7
PLANADVISER - November/December 2019 - 8
PLANADVISER - November/December 2019 - 9
PLANADVISER - November/December 2019 - 10
PLANADVISER - November/December 2019 - 11
PLANADVISER - November/December 2019 - 12
PLANADVISER - November/December 2019 - 13
PLANADVISER - November/December 2019 - 14
PLANADVISER - November/December 2019 - 15
PLANADVISER - November/December 2019 - 16
PLANADVISER - November/December 2019 - 17
PLANADVISER - November/December 2019 - Foul Weather Fund
PLANADVISER - November/December 2019 - 19
PLANADVISER - November/December 2019 - 20
PLANADVISER - November/December 2019 - 21
PLANADVISER - November/December 2019 - 22
PLANADVISER - November/December 2019 - 23
PLANADVISER - November/December 2019 - 2019 PLANADVISER Practice Benchmarking Survey
PLANADVISER - November/December 2019 - 25
PLANADVISER - November/December 2019 - 26
PLANADVISER - November/December 2019 - 27
PLANADVISER - November/December 2019 - 28
PLANADVISER - November/December 2019 - 29
PLANADVISER - November/December 2019 - 30
PLANADVISER - November/December 2019 - 31
PLANADVISER - November/December 2019 - Streamlining the Process
PLANADVISER - November/December 2019 - 33
PLANADVISER - November/December 2019 - 34
PLANADVISER - November/December 2019 - 35
PLANADVISER - November/December 2019 - To Surmount the Gender Gap
PLANADVISER - November/December 2019 - 37
PLANADVISER - November/December 2019 - NQDC Guidance
PLANADVISER - November/December 2019 - 39
PLANADVISER - November/December 2019 - 40
PLANADVISER - November/December 2019 - 41
PLANADVISER - November/December 2019 - Employee-Owned
PLANADVISER - November/December 2019 - 43
PLANADVISER - November/December 2019 - Continued Growth
PLANADVISER - November/December 2019 - 45
PLANADVISER - November/December 2019 - The Extent of Obligation
PLANADVISER - November/December 2019 - Cyberfraud
PLANADVISER - November/December 2019 - How to Protect Participant Data
PLANADVISER - November/December 2019 - C3
PLANADVISER - November/December 2019 - C4
https://www.planadviserdigital.com/planadviser/winter_2023
https://www.planadviserdigital.com/planadviser/fall_2023
https://www.planadviserdigital.com/planadviser/summer_2023
https://www.planadviserdigital.com/planadviser/industryleader_2023
https://www.planadviserdigital.com/planadviser/spring_2023
https://www.planadviserdigital.com/planadviser/november_december_2022
https://www.planadviserdigital.com/planadviser/september_october_2022
https://www.planadviserdigital.com/planadviser/july_august_2022
https://www.planadviserdigital.com/planadviser/may_june_2022
https://www.planadviserdigital.com/planadviser/industry_leader_awards_2022
https://www.planadviserdigital.com/planadviser/march_april_2022
https://www.planadviserdigital.com/planadviser/january_february_2022
https://www.planadviserdigital.com/planadviser/november_december_2021
https://www.planadviserdigital.com/planadviser/september_october_2021
https://www.planadviserdigital.com/planadviser/july_august_2021
https://www.planadviserdigital.com/planadviser/may_june_2021
https://www.planadviserdigital.com/planadviser/march_april_2021
https://www.planadviserdigital.com/planadviser/january_february_2021
https://www.planadviserdigital.com/planadviser/november_december_2020
https://www.planadviserdigital.com/planadviser/september_october_2020
https://www.planadviserdigital.com/planadviser/july_august_2020
https://www.planadviserdigital.com/planadviser/may_june_2020
https://www.planadviserdigital.com/planadviser/march_april_2020
https://www.planadviserdigital.com/planadviser/january_february_2020
https://www.planadviserdigital.com/planadviser/november_december_2019
https://www.planadviserdigital.com/planadviser/september_october_2019
https://www.planadviserdigital.com/planadviser/july_august_2019
https://www.planadviserdigital.com/planadviser/may_june_2019
https://www.planadviserdigital.com/planadviser/march_april_2019
https://www.planadviserdigital.com/planadviser/january_february_2019
https://www.planadviserdigital.com/planadviser/november_december_2018
https://www.planadviserdigital.com/planadviser/september_october_2018
https://www.planadviserdigital.com/planadviser/july_august_2018
https://www.planadviserdigital.com/planadviser/may_june_2018
https://www.planadviserdigital.com/planadviser/march_april_2018
https://www.planadviserdigital.com/planadviser/january_february_2018
https://www.planadviserdigital.com/planadviser/november_december_2017
https://www.planadviserdigital.com/planadviser/september_october_2017
https://www.planadviserdigital.com/planadviser/july_august_2017
https://www.nxtbookmedia.com