The Total View - (Page 54) Growth of ESOPs Year Number of Participants 10,500,000 10,150,000 8,500,000 5,000,000 3,100,000 250,000 Source: http://www.nceo.org/library/eo_stat.html Number of Plans 9,650 9,225 7,700 8,080 4,000 1,600 Whether improving business productivity, providing an ownership succession plan (for private ESOPs only), serving as a corporate recapitalization aid, or providing employees with incentives and retirement savings, the benefits of giving employees a stake in the company’s future can be virtually endless. The popularity of these plans can be seen in the numbers. From 2005 to 2006, the number of employees covered by an ESOP increased by 3.4 percent to 10.5 million, and the number of ESOP plans increased by 4.6 percent to 9,650 plans. Approximately 2,500 firms were 1 2006 2005 2000 1990 1980 1975 majority-owned and roughly another 1,000 firms were believed to be 100 percent ESOP–owned.2 Employer security plans available include stand-alone ESOPs, ESOPs with separate 401(k) plans, and KSOPs which incorporate ESOP and 401(k) features into one plan. Nearly half (42 companies) of the nation's top 100 majority-owned ESOP companies selected The Principal for their administrative services.3 More than 75% of the total plans were ESOP plans with services provided by The Principal; 9% were KSOPs; and another 15% were considered other defined contribution plans invested in employer stock. Employee Stock Type Plans 9.4% KSOP 15.2% Employer Stock 75.4% ESOP ESOP Plans and Participants 1 According to General Social Survey; http://www.nceo.org/library/widespread.html as of Feb. 2007. 2 11% 9% 32% 42% 23% 57% 13% 13% www.NCEO.org Source: as of June 2007, National Center for Employee Ownership Top 100 List and The Principal Financial Group. 3 1,000 KSOP Only 54 http://www.nceo.org/library/eo_stat.html http://www.nceo.org/library/widespread.html http://www.NCEO.org
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