Beyster's plan, essentially an employee stock ownership plan (ESOP), has made many of his employees millionaires.
Any shares held in the ESOP were immediately vested and tucked into the 401(k).
Koenig says a lot of firms do ESOP valuations and consulting but not as many make loans.
So Morgan decided to retire outside ownership in favor of a total ESOP structure for the company.
In the event of a takeover, ESOP employees are one-third as likely to be laid off, Rosen says.
Another reason there will be more ESOP transactions is that Baby Boomers need to retire and sell their businesses.
After 32 years of steady ESOP matching, Britt just retired as a regional vice president with "several" million dollars.
Norman Stein, who teaches law at Drexel University, says employee ownership under the ESOP model causes more harm than good.
"We have a definite social contract with the community, " says Jesseman, who acquired the company in 1985 and created an ESOP.
The Obama administration recently proposed closing a tax break on dividends paid out of employee-ownership plans a move attacked by the ESOP Association.
The settlement in the Tribune ESOP lawsuit filed against Sam Zell and others released Mr. Zell without requiring him to make any payment.
United's employee stock ownership plan, or ESOP, which held 55% of the airline, never succeeded in soothing strained relations between labor and management.
Bank of America and Wells Fargo have done a fair amount of ESOP lending, Rosen says, noting that the market is otherwise pretty dispersed.
Lowe's ended its ESOP to throw more weight behind its 401(k).
Andrew Stumpff, an outspoken critic of the ESOP model who teaches at University of Michigan Law School, says it's bad enough to risk your retirement savings in a single company.
May has done 15 to 20 deals involving divestitures from public companies, which were transitioned to employee ownership, often through the use of an employee stock ownership plan (ESOP).
"What we're seeing is demographics meeting good tax policies, " claims Michael Keeling, president of the ESOP Association, a Washington lobby group, referring to the growing number of firms owned by baby boomers that are converting to employee ownership.
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