Benefits August 22, 2007
Survey: ESOPs linked to Company Performance
August 22, 2007 (PLANSPONSOR.com) - Nearly 90% of
respondents to a recent survey consider creating an employee
stock ownership plan (ESOP) for their company a "good
business decision," and 68% say the ESOP affected overall
productivity.
Reported by Adrien Martin
According to the 16th annual ESOP Economic Performance Survey, 72% of companies with an ESOP reported greater performance from 2005 to 2006. Nineteen percent said they experienced worse performance, and 9% said performance was stagnant from year to year.
Other performance measures obtained by the survey include:
- 82% indicated that revenue increased; 18% indicated that revenue did not increase;
- 72% indicated profitability did increase; 28% indicated that profitability did not increase;
- 68% of survey respondents indicated that the that the ESOP improved the overall productivity of the company’s employees; and
- 47% of companies indicated that they have created an employee participation program since establishing the ESOP.
The 2007 Economic Performance Survey is based on 414 responses from members of the ESOP Association. More information is at www.employeeownershipfoundation.org .
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