Employees as owners
Sharing ownership with the employees help in retaining talent
ESOP
Sharing ownership with the employees help in retaining talent
Employee stock ownership plans (ESOP) are not just for startups and public companies. Even small and independent businesses can create ESOP plans for their employees. Clif Bar gave 20% of the company to its employees.
Clifbar is an independent energy bar brand. It competes with the biggest in the industry such as Pepsico. It has been one of the best places to work. It provided employees with a 401k plan, paid sabbaticals, a gym with personal trainers, free breakfast every Thursday. In 2010 it offered ESOP to its employees. It did not cost them. Every year of the employment they get more shares. After they retired, they can sell it back to Clifbar at the higher price.
Gary Errikson, Clif Bar founders said, “We appreciate everything Clif people do to make this company thrive and grow,” he explains. “We wanted to provide them with a retirement benefit that recognizes the difference they make in the company’s success.”
“We wanted to embrace everybody,” adds Kit. “(The ESOP) was our way of doing it, of saying to employees, ‘You’re part of this company now, and you’re a part owner as well, (you) own that joint,” she adds with a smile.”
Three benefits of ESOP are preserving the legacy of the older owners, retaining and attracting the best talent in the business and tax benefits.
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