10 Questions: Driving Performance Through ESOPs
By Alex Moss and J. Michael Keeling
J. Michael Keeling, President and Chief Staff Officer of The ESOP Association, speaks with Alexander P. Moss, a principal at Praxis Consulting Group, Inc., about driving performance through ESOPs.
Keeling: Based on your experience, what are the overall benefits of employee ownership under an ESOP structure?
Moss: It is inevitable that every firm will be sold; eventually, the owners today will not own the firm forever. The central questions are: to whom will they sell, when, and for whose benefit? The ESOP provides a critical and simple answer for selling shareholders, particularly in private – not publicly traded – firms: the ability to liquidate their ownership interest, while preserving the health and independence of the organisation, and while sharing the future opportunity with those who will contribute to creating that value. This is very attractive to certain sellers, and without this combination of benefits, far fewer sellers would be attracted to employee ownership…
Originally Published In:
10 Questions ESOP Series, Financierworldwide.com, August 2012