ESCA is pleased to highlight data from a new study by the National Center for Employee Ownership (NCEO) that finds employee stock ownership plans in private companies are instrumental in boosting retirement security, increasing workplace productivity, and establishing pride of ownership among workers.
Nancy Wiefek, Ph.D., and Nathan Nicholson of NCEO authored the study, titled "S Corporation ESOPs and Retirement Security." Their analysis of survey responses from more than 61,000 S ESOP plan participants in 39 ESCA member companies found that:
- ESOP participants in the survey have more than twice the average total retirement balance of Americans nationally.
- Nearly all of the respondent companies (97 percent) offer at least one other retirement plan in addition to the ESOP, a stark contrast to the 32 percent of all workers in the U.S. who do not have access to any retirement plan at work.
- The S ESOP companies surveyed provide an array of benefits (health care, education and parental leave) at levels solidly higher than companies that are not employee-owned.
"Employee ownership is a proven solution to America's retirement savings crisis," said ESCA Chairman Denny Scott, Chief Financial Officer at Burns & McDonnell. "At Burns & McDonnell—and employee-owned companies across the country— our workers can save for a secure retirement through their ownership in the company, at no cost to them. We hope more business owners will consider transitioning their companies to an ESOP so that more American workers can experience the pride of ownership and the peace of mind that comes from being prepared for retirement."
NCEO Executive Director Loren Rodgers said in a statement: "At nearly every income-level, American workers fail to save enough for retirement. Employee stock ownership plans, or ESOPs, help workers grow their retirement savings. This study provides further evidence for lawmakers of the positive impact of S ESOPs as they address the savings crisis in America."
The full report on the study is available here: https://www.nceo.org/articles/s-esops-retirement-security.
Phil Swagel, a professor at the University of Maryland School of Public Policy and former assistant secretary of the Treasury for Economic Policy under President George W. Bush, highlighted the findings in an op-ed in today's Washington Examiner: https://www.washingtonexaminer.com/opinion/op-eds/employee-owners-have-a-more-secure-retirement.