Unlocking Potential.
Transforming Lives.
Building Legacies.
The Transformative Impact of ESOPs
Employee ownership has a transformative impact on lives and is the reason behind our dedication. As more companies recognize its benefits, employee ownership is gaining widespread appeal as a unique exit strategy.
Business owners who have poured their hearts and souls into building their companies and creating jobs that uphold communities can now tap into the equity of their businesses. They can enjoy the rewards of their hard work while ensuring their business thrives and continues to support local jobs. An ESOP unlocks an owner's equity while preserving their legacy and company culture. By remaining in the local community and contributing to the local economy, an ESOP sustains employment and establishes a new way for the company to grow and thrive.
Employees who have played pivotal roles in driving profitability and growth can also enjoy the perks of business ownership. It gives employees a stake in the company, a robust retirement plan, and greater job satisfaction. Research supports these benefits. A 2023 NCEO study found that voluntary quit rates in S-ESOP firms were about one-third the national average, reflecting stronger employee retention. The same study reported a median ESOP account balance of roughly $80,500—significantly higher than many non-ESOP peers—and showed that S-corporation ESOPs contributed an average of 2.6 times more toward retirement than comparable non-ESOP companies, with 94 percent of those contributions coming from employers (versus about 31 percent in typical 401(k) plans). When controlling for size, industry, and region, S-ESOP participants held retirement balances an estimated $67,000 higher than similar non-ESOP employees. An earlier NCEO/ESCA study from 2018 likewise found that ESOP participants had more than double the average total retirement savings of U.S. workers overall, with the greatest impact among lower-wage earners.
The transition to an ESOP offers numerous advantages—from financial security to cultural continuity—ensuring long-term success for both employees and the business.
Client Experience Guarantee
Proactive Service
Our experts streamline the transition and implementation process, aiming to maximize outcomes and educate stakeholders at every opportunity. We offer efficient solutions to address the complex issues ESOPs may encounter. With our extensive experience, we anticipate and proactively address many challenges before they escalate into problems.
Prompt Service
With a focus on accountability and transparency, our team ensures that your ESOP needs are addressed promptly and efficiently. Trust in our expertise to navigate the complexities of ESOP management, providing tailored solutions and proactive support every step of the way.
Personal Service
Your ESOP contact is a senior team member committed to your satisfaction, providing valuable insights and experience to help you maximize your plan.
