Walmart is the nation’s largest private employer, with 1.5 million US employees. It recently raised its entry-level wages to $11, or about $23,000 a year for full-timers. When General Motors occupied the biggest-employer slot back in the mid-1950s, it ...
When company owners get ready to sell their businesses, what prevents them from considering an ESOP? Sometimes it’s just ignorance or bad advice; sometimes it’s a preference for a different kind of sale. But often it’s the fact that they can’t get an all-cash deal. Banks may fund part of the transaction, but sellers may find themselves taking back sizable notes of 5-10 years, with corresponding financial risk.
The result, say three employee-ownership financial experts, is that ...
Picture this: New England Patriots quarterback Tom Brady gives a press conference before the big game against the New York Jets. The Las Vegas line that week favors the Pats by 6½ and Brady is confident. “I think we’ll beat that spread,” he says. “In fact, right now we’re projecting a win by eight points.” Later, after the game, Brady again talks to the press, this time apologetically. The Patriots have won by only four, so bettors who wagered on them lost money. “We didn’t anticipate ...
ESOPs are one of America’s best-kept secrets. Despite their tax advantages, despite their record of outperformance, despite the network of specialists, advocacy groups, and trade associations that promote them, despite periodic (and almost always favorable) articles in the press about ESOP companies, the number of ESOPs has plateaued in recent years. Why ...
