In the age of generative artificial intelligence (AI), machine learning, and other powerful technologies, digital transformation in the business world continues to change how work gets done. Along with greater productivity and improved results also comes a new way of thinking about work — and, like the tools of digital transformation, the roots trace to the Silicon Valley. The so-called “4 Geek Norms” of speed, ownership, science, and openness emphasize building company culture on company norms instead of organizational structure. Doing so allows space for doing the work digital tools enable ..read more

According to the National Center for Employee Ownership, there are nearly 6,300 ESOP companies, and an average of 250 more join the ranks each year. Maybe your organization has made the decision to become an ESOP, or maybe you’re already an ESOP and hiring new employees. Either way, you’re met with the job of onboarding new ESOP participants — a task that can be both challenging and rewarding. How do you convey ESOP plan basics in a way that’s thorough yet easy to understand? How do you paint a picture of an ESOP company culture that engages participants in the excitement and responsibility o ..read more

Employee owners often come to understand the value of their ESOP over time as they experience the effects on workplace culture and their personal retirement wealth.  They may get a sense from the beginning that ESOPs are different, but they might find it challenging at first to articulate the benefits of an ESOP on their financial security and employee experience. A deeper appreciation of employee ownership is often nurtured over time, fostering a sense of belonging and commitment, and driving productivity and loyalty that benefit both the individual and the organization. But it’s typica ..read more

Business leaders understand the importance of balance in growing a sustainable company, and make daily decisions that demand attention to finding the right level of equilibrium. New opportunities bring potential for both risk and reward. You have to meet today’s business needs while anticipating tomorrow’s. Balance is especially important for employee stock ownership plans and the companies they own — and it grows increasingly important as an ESOP matures. In a nutshell, here’s why:  As an ESOP matures and pays off its initial debts to business lenders and note holders, its tax advantage ..read more

Employee stock ownership plans (ESOPs) can be a flexible tool in a company’s compensation package, offering a valuable retirement benefit that can help support business growth, too. Are you an employee-owner looking for information about in-service distributions?  Every ESOP is unique. As you’ll see in this article, not all plans share the same features, policies, and rules. If you have questions about your ESOP rules and policies, your company’s plan administrator should be your first call. That versatility can make an ESOP an attractive component of a comprehensive employee benefits pa ..read more

In business banking, the relationship between a banker and their clients isn’t merely transactional. In the best cases, it’s a partnership grounded in trust, insight, and mutual benefit. It embodies a lender’s commitment to understanding and fostering the growth of their clients’ enterprises. Business owners, particularly those at the helm of closely-held companies, look for more than financial services from their trusted lenders. They often want advisors who understand their business deeply and can offer innovative solutions that align with their goals … up to and including their goals for t ..read more

The journey from private, closely held company to employee ownership is transformative for all parties involved. Becoming employee-owned creates an opportunity to foster a unique sense of pride and partnership among everyone who’ll carry the business forward. Once you’ve laid the groundwork and the initial paperwork is complete, you will have achieved a notable business milestone: launching an employee stock ownership plan. That’s already a major achievement — but your ESOP has so much more potential value to offer than “just” a valuable retirement benefit for eligible employees.  As a s ..read more

Virtually every industry is experiencing rapid change and uncertainty driven by technological developments, demographic shifts, and in some cases, disruption they didn’t see coming. But companies that will continue to grow and thrive in the future are those that don't just respond to current needs.  Tomorrow’s industry leaders are anticipating and preparing for future challenges today. They’re taking steps now to future-proof and set the stage for long-term, sustainable business growth.  That means getting proactive about continuous learning and improvement, and cultivating a compan ..read more

When owners of privately held companies explore their options for an ownership transition and liquidity opportunity, plenty of questions can arise — especially when it comes to future business growth and sustainability.  If your team is evaluating the potential advantages of selling to an employee stock ownership plan (ESOP), the financial implications are likely at the forefront of the discussion. Financial leaders, especially CFOs, often bear the responsibility of assessing and managing financial risks associated with major business decisions. And if you’re not as familiar with ESOPs a ..read more

In early conversations with selling business owners and leaders in management who are considering an employee stock ownership plan (ESOP), we often encounter questions and concerns about corporate governance and control.  In fact, governance changes and loss of control are the areas of greatest fear holding business owners back.  Ultimately, it boils down to a fear of the unknown. Fast forward a couple of years, and those same business owners will tell us that a more formal governance structure—including outside board members—was one of the greatest business benefits of implementing ..read more