The MHEDA Journal - Fourth Quarter, 2017 - 57

ESOPs in the U.S.
Currently, there are 6,717 ESOPs covering more than 14 million participants. ESOP companies are diverse: there are ESOPs in
almost every industry, ranging in company size from just a few employees to more than 250,000, spread throughout the U.S.

Geography of ESOPs

Number of Participants
10%

301-1,000

10%

36%

1,000+

Up to 50

21%

51-100

23%

101-300

Most Common Industries
Manufacturing

Engineering

Construction

Banking

A Brief History of Employee Ownership
Year
Event
# of ESOPs
Participants

1956

1974

1996

2017

Peninsula Newspapers
establishes first ESOP.

Federal government creates
statutory framework for
ESOPs.

Congress passes legislation
allowing ESOPs to own
S corporations.

Today, there are roughly
14.1 million ESOP
participants.

1 ESOP

200 ESOPs

6,680 ESOPs

6,717 ESOPs

Under 200

250,000

6.3 million

14.1 million

The National Center for Employee Ownership * web: www.nceo.org and www.esopinfo.org * email: outreach@nceo.org

Graphic used with permission from the National Center for Employee Ownership (NCEO), www.esopinfo.org/
infographics/esops-in-the-use.php

the employee owners would make to
the continued success of the company
in terms of new ideas and new avenues
that might be potential business additions. It's a motivational tool that is
unparalleled to create engagement.
It was a very long process. I wanted
to make sure the company would survive and thrive long term to benefit
the employees who helped to make it
successful over the past 25 years. Some
of the original employees still work at
Warehouse1 today, and many others

have 10, 15, and 20 years of tenure
with the company.
MM: Bill (Rowan) and Warren
(Cornil) wanted an exit strategy that
would allow them to reward the people
who deserved the benefits of owning the
company the most and at the same time
allowed them to cash out their stocks.
TA: The owners wanted to sell their
business and the management team
decided that it would be best if we
formed an ESOP and had everyone
participate in the Company's success.

We all agreed that this would be a key
differentiator in the market that would
help us attract and retain key personnel, especially technicians.
JS: We converted a profit sharing
pension plan into an ESOP Plan.
TMJ: How do you believe that being
an ESOP has impacted your company's
culture and the productivity of your
employees?
MLJ: Still early but many employees have bought in right away and are
thinking about how to increase their
The MHEDA Journal | Fourth Quarter 2 017

57


http://www.nceo.org http://www.esopinfo.org http://www.esopinfo.org/

Table of Contents for the Digital Edition of The MHEDA Journal - Fourth Quarter, 2017

Chairman’s Perspective
From the Desk of Liz Richards
Editor’s Note
Ask A MHEDANET GROUP
Women in Industry Conference
MHEDA MEMBER PROFILE
@WORK
WOMEN IN INDUSTRY
INDUSTRY PULSE
2018 CRITICAL IMPACT FACTORS
DEFINING MHEDA’S 2018 CRITICAL IMPACT FACTORS
SALES SUCCESS STORIES
ESOP ROUND TABLE
FROM CHARASMATIC PERSUADER TO KNOWLEDGE BROKER: THE EVOLVING WORLD OF SALES
49 EMPLOYEE ENGAGEMENT IDEAS
DO UNTO OTHERS AS THEY WANT TO BE DONE UNTO
THE PRESIDENT’S EXECUTIVE ORDER 13789 AND ITS FUTURE EFFECT ON THE TAX CODE
New Members
Spotlight on Association News
MHEDA Milestones
Index to Advertisers by Product Category
Index to Advertisers by Alphabetical Order
The Last Word
The MHEDA Journal - Fourth Quarter, 2017 - intro
The MHEDA Journal - Fourth Quarter, 2017 - cover1
The MHEDA Journal - Fourth Quarter, 2017 - cover2
The MHEDA Journal - Fourth Quarter, 2017 - 3
The MHEDA Journal - Fourth Quarter, 2017 - 4
The MHEDA Journal - Fourth Quarter, 2017 - 5
The MHEDA Journal - Fourth Quarter, 2017 - 6
The MHEDA Journal - Fourth Quarter, 2017 - 7
The MHEDA Journal - Fourth Quarter, 2017 - 8
The MHEDA Journal - Fourth Quarter, 2017 - 9
The MHEDA Journal - Fourth Quarter, 2017 - 10
The MHEDA Journal - Fourth Quarter, 2017 - Chairman’s Perspective
The MHEDA Journal - Fourth Quarter, 2017 - 12
The MHEDA Journal - Fourth Quarter, 2017 - From the Desk of Liz Richards
The MHEDA Journal - Fourth Quarter, 2017 - 14
The MHEDA Journal - Fourth Quarter, 2017 - Editor’s Note
The MHEDA Journal - Fourth Quarter, 2017 - 16
The MHEDA Journal - Fourth Quarter, 2017 - Ask A MHEDANET GROUP
The MHEDA Journal - Fourth Quarter, 2017 - 18
The MHEDA Journal - Fourth Quarter, 2017 - 19
The MHEDA Journal - Fourth Quarter, 2017 - Women in Industry Conference
The MHEDA Journal - Fourth Quarter, 2017 - 21
The MHEDA Journal - Fourth Quarter, 2017 - MHEDA MEMBER PROFILE
The MHEDA Journal - Fourth Quarter, 2017 - 23
The MHEDA Journal - Fourth Quarter, 2017 - 24
The MHEDA Journal - Fourth Quarter, 2017 - 25
The MHEDA Journal - Fourth Quarter, 2017 - 26
The MHEDA Journal - Fourth Quarter, 2017 - @WORK
The MHEDA Journal - Fourth Quarter, 2017 - 28
The MHEDA Journal - Fourth Quarter, 2017 - WOMEN IN INDUSTRY
The MHEDA Journal - Fourth Quarter, 2017 - INDUSTRY PULSE
The MHEDA Journal - Fourth Quarter, 2017 - 31
The MHEDA Journal - Fourth Quarter, 2017 - 32
The MHEDA Journal - Fourth Quarter, 2017 - 2018 CRITICAL IMPACT FACTORS
The MHEDA Journal - Fourth Quarter, 2017 - DEFINING MHEDA’S 2018 CRITICAL IMPACT FACTORS
The MHEDA Journal - Fourth Quarter, 2017 - 35
The MHEDA Journal - Fourth Quarter, 2017 - 36
The MHEDA Journal - Fourth Quarter, 2017 - 37
The MHEDA Journal - Fourth Quarter, 2017 - SALES SUCCESS STORIES
The MHEDA Journal - Fourth Quarter, 2017 - 39
The MHEDA Journal - Fourth Quarter, 2017 - 40
The MHEDA Journal - Fourth Quarter, 2017 - 41
The MHEDA Journal - Fourth Quarter, 2017 - 42
The MHEDA Journal - Fourth Quarter, 2017 - 43
The MHEDA Journal - Fourth Quarter, 2017 - 44
The MHEDA Journal - Fourth Quarter, 2017 - 45
The MHEDA Journal - Fourth Quarter, 2017 - 46
The MHEDA Journal - Fourth Quarter, 2017 - 47
The MHEDA Journal - Fourth Quarter, 2017 - 48
The MHEDA Journal - Fourth Quarter, 2017 - 49
The MHEDA Journal - Fourth Quarter, 2017 - 50
The MHEDA Journal - Fourth Quarter, 2017 - 51
The MHEDA Journal - Fourth Quarter, 2017 - 52
The MHEDA Journal - Fourth Quarter, 2017 - 53
The MHEDA Journal - Fourth Quarter, 2017 - 54
The MHEDA Journal - Fourth Quarter, 2017 - 55
The MHEDA Journal - Fourth Quarter, 2017 - ESOP ROUND TABLE
The MHEDA Journal - Fourth Quarter, 2017 - 57
The MHEDA Journal - Fourth Quarter, 2017 - 58
The MHEDA Journal - Fourth Quarter, 2017 - 59
The MHEDA Journal - Fourth Quarter, 2017 - FROM CHARASMATIC PERSUADER TO KNOWLEDGE BROKER: THE EVOLVING WORLD OF SALES
The MHEDA Journal - Fourth Quarter, 2017 - 61
The MHEDA Journal - Fourth Quarter, 2017 - 62
The MHEDA Journal - Fourth Quarter, 2017 - 63
The MHEDA Journal - Fourth Quarter, 2017 - 64
The MHEDA Journal - Fourth Quarter, 2017 - 65
The MHEDA Journal - Fourth Quarter, 2017 - 49 EMPLOYEE ENGAGEMENT IDEAS
The MHEDA Journal - Fourth Quarter, 2017 - 67
The MHEDA Journal - Fourth Quarter, 2017 - 68
The MHEDA Journal - Fourth Quarter, 2017 - 69
The MHEDA Journal - Fourth Quarter, 2017 - 70
The MHEDA Journal - Fourth Quarter, 2017 - 71
The MHEDA Journal - Fourth Quarter, 2017 - 72
The MHEDA Journal - Fourth Quarter, 2017 - 73
The MHEDA Journal - Fourth Quarter, 2017 - 74
The MHEDA Journal - Fourth Quarter, 2017 - 75
The MHEDA Journal - Fourth Quarter, 2017 - 76
The MHEDA Journal - Fourth Quarter, 2017 - 77
The MHEDA Journal - Fourth Quarter, 2017 - 78
The MHEDA Journal - Fourth Quarter, 2017 - 79
The MHEDA Journal - Fourth Quarter, 2017 - 80
The MHEDA Journal - Fourth Quarter, 2017 - DO UNTO OTHERS AS THEY WANT TO BE DONE UNTO
The MHEDA Journal - Fourth Quarter, 2017 - 82
The MHEDA Journal - Fourth Quarter, 2017 - THE PRESIDENT’S EXECUTIVE ORDER 13789 AND ITS FUTURE EFFECT ON THE TAX CODE
The MHEDA Journal - Fourth Quarter, 2017 - 84
The MHEDA Journal - Fourth Quarter, 2017 - 85
The MHEDA Journal - Fourth Quarter, 2017 - 86
The MHEDA Journal - Fourth Quarter, 2017 - New Members
The MHEDA Journal - Fourth Quarter, 2017 - Spotlight on Association News
The MHEDA Journal - Fourth Quarter, 2017 - 89
The MHEDA Journal - Fourth Quarter, 2017 - 90
The MHEDA Journal - Fourth Quarter, 2017 - 91
The MHEDA Journal - Fourth Quarter, 2017 - MHEDA Milestones
The MHEDA Journal - Fourth Quarter, 2017 - 93
The MHEDA Journal - Fourth Quarter, 2017 - Index to Advertisers by Product Category
The MHEDA Journal - Fourth Quarter, 2017 - 95
The MHEDA Journal - Fourth Quarter, 2017 - Index to Advertisers by Alphabetical Order
The MHEDA Journal - Fourth Quarter, 2017 - 97
The MHEDA Journal - Fourth Quarter, 2017 - The Last Word
The MHEDA Journal - Fourth Quarter, 2017 - cover3
The MHEDA Journal - Fourth Quarter, 2017 - cover4
https://www.nxtbook.com/naylor/DISQ/DISQ0418
https://www.nxtbook.com/naylor/DISQ/DISQ0318
https://www.nxtbook.com/naylor/DISQ/DISQ0218
https://www.nxtbook.com/naylor/DISQ/DISQ0118
https://www.nxtbook.com/naylor/DISQ/DISQ0417
https://www.nxtbook.com/naylor/DISQ/DISQ0317
https://www.nxtbook.com/naylor/DISQ/DISQ0217
https://www.nxtbook.com/naylor/DISQ/DISQ0117
https://www.nxtbook.com/naylor/DISQ/DISQ0416
https://www.nxtbook.com/naylor/DISQ/DISQ0316
https://www.nxtbook.com/naylor/DISQ/DISQ0216
https://www.nxtbook.com/naylor/DISQ/DISQ0116
https://www.nxtbook.com/naylor/DISQ/DISQ0415
https://www.nxtbook.com/naylor/DISQ/DISQ0315
https://www.nxtbook.com/naylor/DISQ/DISQ0215
https://www.nxtbook.com/naylor/DISQ/DISQ0115
https://www.nxtbook.com/naylor/DISQ/DISQ0414
https://www.nxtbook.com/naylor/DISQ/DISQ0314
https://www.nxtbook.com/naylor/DISQ/DISQ0214
https://www.nxtbook.com/naylor/DISQ/DISQ0114
https://www.nxtbook.com/naylor/DISQ/DISQ0413
https://www.nxtbook.com/naylor/DISQ/DISQ0313
https://www.nxtbook.com/naylor/DISQ/DISQ0213
https://www.nxtbook.com/nxtbooks/naylor/DISQ0113
https://www.nxtbook.com/nxtbooks/naylor/DISQ0412
https://www.nxtbook.com/nxtbooks/naylor/DISQ0312
https://www.nxtbook.com/nxtbooks/naylor/DISQ0212
https://www.nxtbookmedia.com