ESOP Companies are More Productive
April 10, 2007

Yesterday we talked about the benefits of ESOPs and employee ownership to employees. It is important to note that one of the benefits, job satisfaction, is generally dependent on the employees’ level of participation in the decision-making process. ESOP companies can increase the level of participation by embracing an open-book management style and actively involving the employees (both individually and in workgroups) in the decision-making process. Studies have demonstrated that ESOP companies with a high level of participation and a consistent ESOP communication and training program are more productive and grow faster than non-ESOP companies.

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The author of one of the negative Tribune articles (discussed here) has admitted that the transaction was more complex than she thought, and provided a link to an NCEO article. The NCEO article reiterates that none of the existing qualified plan assets are being used in the transaction.

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After reading all of the articles about the Tribune, it was refreshing to read the story of this ESOP company.