Key Takeaways
- • A new national study by Steve Storkan, Executive Director of the Employee Ownership Expansion Network (EOX), finds $141.8 billion in ESOP benefits were paid to workers and beneficiaries from 2009 through 2024.
- • Approximately $28.7 billion, or 20 percent, of measured distributions came from ESOPs winding down, often after a company sale or ownership change, while about $113.1 billion came from ESOPs not winding down.
- • The analysis, based on roughly 100,000 Form 5500 filings, identified 3,943 new ESOPs and 3,839 ESOPs entering termination from 2009 through 2024.
- • New ESOP formations exceeded terminations in every year from 2016 through 2024, according to the report.
- • The report, More Than What Remains, includes state-level data on distributions, contributions, new formations and terminations, based on plan sponsor headquarters location.
Summary
A new national study of Employee Stock Ownership Plans (ESOPs) has measured $141.8 billion in benefits paid to workers and beneficiaries from 2009 through 2024, according to an announcement distributed via PRWeb. The report, titled More Than What Remains: Measuring the Wealth ESOPs Have Already Delivered, was authored by Steve Storkan, Executive Director of EOX, with research and data analysis by Aaron Dean, Founder and CEO of Deanalytics. Dean developed the software and dashboard used to collect and analyze the annual Form 5500 filings of ESOPs.
The study frames cumulative distributions as a new metric for the economic impact of employee ownership. Traditionally, national statistics have focused on assets currently held in plans and annual distribution amounts. The researchers state this is the first study to calculate cumulative ESOP distributions over an extended period, requiring analysis of approximately 100,000 Form 5500 filings. The study also examined contributions, plan terminations, and new ESOP formations over the sixteen-year window.
Approximately $28.7 billion, or 20 percent, of measured distributions came from ESOPs that were winding down, often following a company sale or ownership change. The report cites Leidos's 2020 acquisition of Dynetics, a Huntsville, Alabama employee-owned company, as an example: the Dynetics ESOP was terminated and about $977 million in distributions across 2019 and 2020 was paid to roughly 2,260 participants. The remaining approximately $113.1 billion came from ESOPs not winding down, reflecting distributions tied to retirement, leaving a job, diversification and other events.
The analysis identified 3,943 new ESOPs and 3,839 ESOPs entering termination from 2009 through 2024. New ESOPs exceeded terminations in every year from 2016 through 2024. The authors note that small changes in the national count of active ESOPs can mask significant movement as companies enter and leave employee ownership.
The report includes state-level data on distributions, contributions, new formations and terminations. Figures are based on the location reported by the plan sponsor, typically company headquarters, and do not identify where distribution recipients live. Storkan and Dean said they are willing to work with state and local leaders, researchers and employee ownership organizations on more targeted analysis. The full study is available at no cost.
The study frames cumulative distributions as a new metric for the economic impact of employee ownership. Traditionally, national statistics have focused on assets currently held in plans and annual distribution amounts. The researchers state this is the first study to calculate cumulative ESOP distributions over an extended period, requiring analysis of approximately 100,000 Form 5500 filings. The study also examined contributions, plan terminations, and new ESOP formations over the sixteen-year window.
Approximately $28.7 billion, or 20 percent, of measured distributions came from ESOPs that were winding down, often following a company sale or ownership change. The report cites Leidos's 2020 acquisition of Dynetics, a Huntsville, Alabama employee-owned company, as an example: the Dynetics ESOP was terminated and about $977 million in distributions across 2019 and 2020 was paid to roughly 2,260 participants. The remaining approximately $113.1 billion came from ESOPs not winding down, reflecting distributions tied to retirement, leaving a job, diversification and other events.
The analysis identified 3,943 new ESOPs and 3,839 ESOPs entering termination from 2009 through 2024. New ESOPs exceeded terminations in every year from 2016 through 2024. The authors note that small changes in the national count of active ESOPs can mask significant movement as companies enter and leave employee ownership.
The report includes state-level data on distributions, contributions, new formations and terminations. Figures are based on the location reported by the plan sponsor, typically company headquarters, and do not identify where distribution recipients live. Storkan and Dean said they are willing to work with state and local leaders, researchers and employee ownership organizations on more targeted analysis. The full study is available at no cost.
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