Last week, the Employee-Owned S Corporations of America (ESCA) released a paper produced jointly with the National Center for Employee Ownership (NCEO) reviewing the benefits of private ESOP companies for governors and offering states tools for growing employee ownership. The new report is called
Citing strong evidence that ESOPs contribute to job sustainability and growth, retirement security, company performance and other benefits, the report encourages governors to take steps to promote ESOPs in their own states. Among the recommendations:
- Create a state office of employee ownership, similar to programs established in Ohio, Colorado, Vermont, Pennsylvania and California
- Extend and expand tax incentives to owners of companies selling to an ESOP
- Provide loan funds, loan guarantees and incentives for ESOP loan providers
Noting that "Governors can play a vital role in expanding ESOP educational opportunities and economic incentives to grow ESOPs at the state level,” Board vice chairman Denny Scott spoke to the paper and its recommendations in a panel he was invited to be part of at the Democratic Governors Association (DGA) conference earlier this month. ESCA will also share this study more broadly through the DGA and Republican Governors Association so that all governors and their staffs will have access to information about policies and initiatives that have been enacted in other states that can help their state create and keep good jobs through employee ownership.
Your company can help by contacting your state’s governor, and governors in other states where you may have significant operations, to bring the study to their attention and encourage their support for measures to increase employee ownership. Additionally, if you or your company has strong contacts with your local Chamber of Commerce or other business organization that would be interested in and helpful to promoting these ideas and policies, this is an excellent opportunity to share the report and its findings.
Funding for the paper was provided by the Foundation for Private Employee Ownership’s Richard A. Hassel Research Fund. This fund was jointly created in February 2013 by Lifetouch and the Foundation for Private Employee Ownership to honor the late Dick Hassel , a founding ESCA Board member and General Counsel of Lifetouch. Dick was a lifelong advocate of good research and a strong intellectual foundation for ESCA’s policy positons and messages.