Editor’s note: This is part four of a six-part series in which Peter Newman, CFA, of Peak Wealth Planning, explains the benefits of employee ownership for the U.S. workforce. There are more than 6,500 Employee Stock Ownership Plans, or ESOPs, in the U.S. covering almost 14 million employees. Part one is Five Key Advantages to Working at an Employee-Owned Company. Part two is How Does an Employee Stock Ownership Plan, or ESOP, Work? Part three is Five Things Employee Owners Need to Know About Their ESOP.
Employee stock ownership plans (ESOPs) empower employees by providing them with a company-funded account for retirement. While businesses steered by their employees often exhibit remarkable management, they, like any other enterprises, may occasionally face challenging periods or even extreme situations like bankruptcy. Kodak, Piggly Wiggly and most recently in 2023, Silicon Valley Bank, are examples that underline the importance of resilience and adaptability.
