The E is for Employees
When most people hear about an ESOP—Employee Stock Ownership Plan—they often focus on the advantages it offers business owners. But at its core, an ESOP is about the employees. It’s one of the most powerful retirement tools a company can offer. On average, companies contribute 250% more to ESOPs than to 401(k) plans. And data shows that ESOP-owned companies have historically delivered significantly higher returns—11.5% compared to 7.1% for the S&P 500 over a 10-year period.
But numbers only tell part of the story. In the video linked below, our President, Kelly Finnell, shares an incredibly moving example from a former client. The CEO of an ESOP-owned company recalled how, after selling the business for $1.6 billion, a longtime mailroom employee—who had never earned more than $50,000 a year—discovered he would receive $4.2 million through the ESOP. Overcome with emotion, the employee shared plans to start a college fund for his family, creating generational wealth that once felt out of reach. That’s the kind of transformative impact an ESOP can deliver.
Even in everyday conversations, the benefits are real. A young cashier at Publix—a major ESOP-owned company—may not have had a background in finance, but she proudly explained how a recent stock split increased her account value. Whether it’s millions at retirement or a growing sense of ownership early in a career, ESOPs empower employees to build wealth, feel invested, and secure a brighter future.
Drew Bringhurst
Vice President of Client Engagement
dbringhurst@execfin.com
www.execfin.com
901.496.0930
