Across the national and global sectors, businesses are competing with each other to stand out both financially and in company growth. Employee stock ownership plans (ESOP) are playing an essential role in this. These plans are designed so that each eligible employee shares in the ownership of their company.
According to a Rutgers University study from the year 2000, companies that took advantage of ESOPs grew 2.3% to 2.4% faster than companies that never set up an ESOP.
ACA News reports that Renkim Corporation, a financial and critical document consultant is now 100% employee-owned thanks to a new ESOP approach.
“Restructuring to 100% ESOP is a positive shift that benefits the corporation and our employees,” said Cliff Stephens, President and Chief Operating Officer of Renkim. “The ESOP structure promotes and cultivates a culture of employment longevity, accountability and a profound sense of pride in the workplace.”
Since Renkim implemented its new 100% employee-owned approach, more and more ESOP companies could follow suit in the hopes of improving their organizations.
The ESOP Company of the Year, Eagle Communications, a Broadband Services and Media company with over 290 employee-owners, was the organization that most embodied the importance of employee-ownership.
“We are honored to have received this award and be considered one of the companies that have laid the foundation for what it means to be Company of the Year,” said Gary Shorman, President and Chief Executive Officer of Eagle Communications. “We were recognized for our internal and external promotion of ESOPs; the various ways we educate, share and participate in the ESOP throughout the year and our continuous involvement to stay connected in the communities we serve.”