Jump to content

Studies performed after 2008 Market crash


Recommended Posts

Group:

I am looking for studies performed after 2008-2010 market crash/recession that shows a greater number of employers wanting to set up an ESOP

vs. that of having employees retirement at risk of wall street casino.  I have found a few but not sure they are exactly what I'm looking for.

Thoughts and comments appreciated.

Thank you

Link to comment
Share on other sites

I don't know about studies that showed they wanted to set up ESOPs to get out the market "casino" (a loaded term).

There are studies that showed ESOP companies laid off fewer employees during 2008 than similar companies who didn't have an ESOP. 

https://www.businesswire.com/news/home/20170425006676/en/Employee-Ownership-Companies-Laid-Workers-Firms-Recession

https://www.nceo.org/assets/pdf/articles/EO_Costs_of_Unemployment.pdf

https://www.esopassociation.org/articles/employee-owned-companies-have-fewer-layoffs

 

The NCEO, ESOP Association, the Beyster Institute and the place at Rutgers in the first link are the best places to find research on employee ownership.  The NCEO and ESOP Association tend to require membership to get their best research or you have to pay to get the research on a per paper/book basis.  

The lower cost of unemployment insurance by employee owned companies has even caught the eye of several congressmen.   You could lower government costs and spread the benefits of employee ownership by encouraging employee ownership seems like good public policy to them. 

 

Hope that helps. 

Link to comment
Share on other sites

 

Privately held companies use ESOPs most for business transtion, and the vast majority of ESOPs are in this category. The number of comapnies doing this has risen slightly per year but the numbe rof participants has grown a lot. You can see data on this at https://www.nceo.org/articles/employee-ownership-by-the-numbers

Many public companies make their shares available as an investment option and/or match employee deferrals with company stock. In the wake of Enron, WorldCom, Lucent and many other companies that saw severe drops in their stock in the early 2000s, and then again in recession of 2008 and 2009, this practice became markedly less common, with employee investment in company stock in 401(k) plans dropping from a peak of about 19% of all assets to under 10% today. The "stock-drop" companies faced numerous lawsuits, and while few have actually been decided in favor of the plaintiffs, there have been a number of settlements for tens of millions of dollars each. In the Pension Protection Act of 2006, Congress also made changes to these plans to allow employees to diversify out of company stock quickly.

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...