Business View Magazine - May 2024

ECONOMIC POWER OF ESOPs Majority ESOP-owned companies were 3 to 4 times more likely to retain staff compared to other businesses during the pandemic. In a study of the food industry, ESOPs were 18% more likely to report an increase in revenue during the pandemic compared to a closely matched group of non-ESOPs. Looking at all plan filings during the pandemic controlling for size, industry, and region, being an ESOP is associated with retaining or adding an additional 6 employees (active participants). More likely to retain staff Lower job loss More likely to grow RESILIENCY THROUGH THE PANDEMIC 1 2 3 The National Center for Employee Ownership | web: www.nceo.org | email: research@nceo.org