Business View Magazine - May 2024

Rutgers University and SSRS, an affiliate of The ESOP Association. (2020). Employee Owned Firms in the COVID-19 Pandemic. NCEO. (2021). Measuring the Impact of Ownership Structure on Resiliency in Crisis NCEO. (2022). Employee Ownership in the US Food System During COVID-19. NCEO. (2022). Analysis of DOL data NCEO. (2021). Measuring the Impact of Ownership Structure on Resiliency in Crisis. NCEO. (2018). S Corporation ESOPs and Retirement Security. National Institute on Retirement Security. (2018). Retirement in America: Out of Reach for Working Americans? WEALTH CREATION The median retirement account balance among all working individuals in the US is $0.00 . 1 2 3 4 5 6 7 A survey of S corporation ESOPs found the same pattern for employees making under $25,000 a year, with ESOP employees holding an average of $55,526 in retirement savings compared to $22,447, the retirement savings of similar workers nationally. ESOP Employees All Employees Total contributions to ESOP accounts were over $89 billion in 2019, an average of $6,420 in contributions per participant. The average ESOP account balance is more than double the average 401(k) account balance at a closely matched non-ESOP company offering only a 401(k) plan. (As well, a large majority of ESOP companies offer a 401(k) plan alongside the ESOP.) 401(k) PLAN ESOP 5 6 ESOPs paid out over $137 billion dollars to participants in 2019. 4 7 4