Washington, D.C. – Employee-Owned S Corporations of America (ESCA) is pleased to highlight data from a new study by the National Center for Employee Ownership (NCEO). The study finds that employee stock ownership plans (ESOPs) in private companies are instrumental in boosting retirement security, increasing workplace productivity, and establishing pride of ownership among workers.
Nancy Wiefek, Ph.D., and Nathan Nicholson of NCEO authored the study, titled “S Corporation ESOPs and Retirement Security,” by analyzing survey responses from more than 61,000 ESOP plan participants in 39 ESCA member companies. Key findings from the study include:
- ESOP participants in the survey have more than twice the average total retirement balance of Americans nationally.
- Nearly all of the respondent companies (97 percent) offer at least one other retirement plan in addition to the ESOP, a stark contrast to the 32 percent of all workers in the U.S. who do not have access to any retirement benefits at all.
- The S ESOPs surveyed report quit and separation rates that are more than two times lower than national rates.
“Employee ownership is a proven solution to America’s savings crisis, especially when it comes to retirement,” said ESCA Chairman Denny Scott, Chief Financial Officer at Burns & McDonnell, a 100-percent employee-owned business. “We at Burns & McDonnell—and employee-owners across the country—know firsthand how ESOPs have boosted our savings and set us up for a secure retirement. We hope more companies will consider ESOPs and give their employees the peace of mind that they can provide for their families for years to come.”
NCEO Executive Director Loren Rodgers said in a statement: “At nearly every income-level, American workers fail to save enough for retirement. Employee stock ownership plans, or ESOPs, help workers grow their retirement savings. This study provides further evidence for lawmakers of the positive impact of S ESOPs as they continue to address the savings crisis in America.”
The full report on the study is available here.