Let’s Celebrate! National Employee Ownership Month Begins October 1.
October is a busy month. It’s National Book Month, National Cyber Security Awareness Month, Domestic Violence Awareness Month and National Employee Ownership Month, to name just a few of the topics that are commemorated. It’s the last of these that is the most interesting to me in my role as an Employee Stock Ownership Plan (ESOP) consultant.
If you’ve read my past blogs, you’ll have noted that there are many advantages ESOPs bring to the selling business owners, the company and the employees. So, why do we need a month to celebrate (other than the fact that everyone likes cake and ice cream)?
For companies with ESOPs and their employee-owners, it’s a time to reflect on the role that the plan has played for both the company and the employees. It’s a great time to educate employees about their role in the company’s success and how that translates into their personal success. Many companies with an ESOP will use October as a time to reinforce the cultural differences of employee owned companies.
For business owners looking to sell all or part of their company, it’s a great time to get educated about the plans. The owner, along with his or her advisors, can determine if the ESOP is a feasible alternative that helps them attain their goals and objectives. The business owner can see the enthusiasm that employee ownership generates and the positive impact that it can have on the company.
Employee ownership month is also important to highlight the advantages of employee stock ownership plans with legislators and regulators. This promotion can make ESOPs even more attractive as government officials learn how they can encourage the growth of the plans.
In addition to this blog, you can find more information about ESOPs here. If you’re celebrating National Employee Ownership Month, let me know how you are doing it.
In addition to blogging here, I also tweet regularly about topics of interest to ESOPs. Click to follow me on Twitter – @jlripperger.
While this communication may be used to promote or market a transaction or an idea that is discussed in the publication, it is intended to provide general information about the subject matter covered and is provided with the understanding that none of the member companies of The Principal are rendering legal, accounting, or tax advice. It is not a marketed opinion and may not be used to avoid penalties under the Internal Revenue Code. You should consult with appropriate counsel or other advisors on all matters pertaining to legal, tax, or accounting obligations and requirements.
Insurance products and plan administrative services are provided by Principal Life Insurance Company a member of the Principal Financial Group® (The Principal®), Des Moines, IA 50392.