By Upendra Chivukula and Veny W. Musum
Today, almost 50% of Americans own zero capital wealth. With the already manifest discontent all over the country, this fact is an ominous recipe for even wider, much more serious future levels of unrest. However, there is a solution. Shared employee ownership via Employee Stock Ownership Plans (ESOPs) are a proven and overwhelmingly successful route that could be the perfect economic and social antidote resulting in a win for all parties involved.
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Let’s dive in deeper and ask:
- Is it good for employees?
- Is it good for companies?
- Is it good for society?
- Is it good for owners?
Good for employees?
In ESOP companies, employees have about 2.5 times the retirement assets of comparable non-ESOP employees. The average account balance among ESOP association members is $113,318. Best yet, in ESOPs, even salaries are somewhat higher.
Upendra J. Chivukula is New Jersey’s BPU commissioner and former democrat deputy speaker. Veny W. Musum is president of Musum Real Estate/Equity Strategies and Republican Committeeman, also a former senior vice president of John Paul Mitchell Systems. They are co-authors of THE 3rd WAY: Economic Reform or Social Revolution – the solution to income inequality… Building Inclusive Capitalism through Employee Ownership.