Economic inequality and lack of good jobs have left many workers, particularly women and people of color, without a fair share of the US’s economic prosperity. Despite the significant rise in corporate profits, front-line workers continue to experience low wages and see little returns for their contributions. Research shows that employee ownership, such as employee stock ownership plans (ESOPs), can be a valuable tool in creating better jobs, building wealth for workers, and increasing businesses’ resiliency while reducing employee turnover. ESOPs are the most prevalent form of employee ownership in the US, with nearly 14 million workers participating in them.
The growth of ESOPs has plateaued over the past decade, but the next decade presents a unique opportunity to expand ESOPs as many business owners retire and sell their companies. Low awareness of ESOPs and the benefits they offer, insufficient assistance and support to help businesses convert to ESOPs, and some regulatory policies pose potential barriers, however, to growing ESOPs. How can we take advantage of this once-in-a-generation opportunity to meaningfully grow the number of ESOPs? What impact could this have on job quality, wealth inequality, and our economy? What policies, supports, and assistance do businesses, including publicly traded companies, need to convert to an ESOP?
On April 11, 2023, the Aspen Institute Economic Opportunities Program convened a panel of experts to discuss “ESOPs, Job Quality, and Wealth Inequality: The Potential of Employee Stock Ownership Plans.” This event features a panel discussion with Sean-Tamba Matthew (Stevens & Lee, ESOP Strategies), Noelle Montaño (ESCA), Corey Rosen (The National Center for Employee Ownership), Cindy Turcot (Gardener’s Supply Company), and moderator Talmon Smith (New York Times). For more information about this event — including audio, video, transcript, and related resources — visit our website: https://www.aspeninstitute.org/events/job-quality-and-wealth-inequality-the-potential-of-employee-stock-ownership-plans/