Three Times the Retirement Assests
Studies show that ESOP participants retire with 3x the assets of those in non-ESOP companies.
No tax on ESOP contributions
Contributions to the ESOP are tax-deductible. Employees pay no tax until they receive a distribution form when they leave or retire.
A recent study found that ESOP firms have significantly higher sales growth and higher sales than similar firms without ESOPs.
Greater Employee Stability and Retention
Studies show that companies with employee ownership are linked to greater employment stability and lower than average employee retention rates.
Higher than average employee salaries
ESOP firms on average pay employees 12% higher than the hourly wage in the comparison companies.
Employee Owners Receive More Training
Studies also show that 69% of employee owners reported that they had received formal training from their current employers in the past year compared to 42% among nonowners.