ESOP Facts

  • Currently there are approximately 11,500 ESOP's in the USA covering 10 million participants
  • Today, 10% of America's private sector workforce work for ESOP companies
  • About 330 ESOP Companies are publicly traded
  • Approximately 4,000 ESOP Companies are majority owned by the employees
  • Approximately 2,500 ESOP companies are 100% owned by the employees
  • In 1974 there were only 200 ESOP companies
  • Typical firms have 20 to 500 employees, however, employees own a majority of the stock of such companies as Amsted Industries, United Airlines, Publix Supermarkets, and Science Applications, a 30,000-employee R&D firm

Advantages of an ESOP to employees:

  • Employees share equity growth of company.
  • Proven motivator. Builds unity and team spirit.
  • Personal accounts accumulate tax-free. Tax favored at distribution.
  • Retirement funds can be enhanced with ESOPs.