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News


Kelly Finnell, the ESOP Coach, talks about the advantages and benefits of ESOPs for both the Business Owner and the Employees.

Wall Street Journal

Founders Cash Out, but Do Workers Gain? April 17, 2013

As the old expression goes: “All’s well that ends well.” And that certainly is the case with the April 12, 2013 Wall Street Journal article, “Founders Cash Out, but Do Workers Gain?”

The article begins benignly enough with a discussion of the recent Dansko (shoe maker) ESOP transaction and states that “This week a bipartisan group of lawmakers introduced a bill to encourage employee-ownership plans.” However the article then quotes two outspoken critics of ESOPs and mentions a failed ESOP company of note, Enron.

The remainder of the article is a very strong endorsement of ESOPs with citations of studies by Harvard, Rutgers, and the National Bureau of Economic Research which found that ESOP companies “fared better during the recession than more traditionally structured firms, including fewer layoffs, higher productivity, and stronger employee loyalty.” The article concludes with quotes from employees of several ESOP companies who discuss their overwhelmingly positive ESOP experiences.

The focus of the WSJ article is the use of ESOPs as an ownership succession strategy. The article points out that not all companies that use ESOPs for this purpose succeed and that when they don’t, employees can suffer negative economic consequences. Unquestionably, this a true statement. However, it should also be noted that other ownership succession planning strategies- such as a sale to a strategic or financial buyer-also have risks and sometimes fail. The failure rate of these alternative strategies may be equal to or greater than the failure rate of ESOPs, and surely these failures have negative economic consequences for the company’s employees. ESOP critics would do well to keep in mind that while there are no guarantees in business or in ownership succession planning, at least ESOP companies put their employees’ interest first and offer employees the opportunity for greater financial rewards.

 

John Hancock Radio

ESOPs with Kelly Finnell aired Feb 26, 2013

Listen in as Josiah Winslow, Esq., Director, JH Advanced Markets Group and Kelly Finnell, J.D., CLU, AIF, one of the nation`s premier ESOP and Ownership Succession Planning consultants and President of Executive Financial Services, discuss Employee Stock Ownership Plans. You will hear what types of candidates are appropriate for ESOPs and when life insurance is a good fit.

 

MSNBC

More Businesses Selling Themselves to Employees

More and more small businesses are selling their companies to their own employees through Employee Stock Ownership Plans. Tracy Davidson reports.


Fox News

Kelly Finnell, the ESOP Coach, talks about the advantages and benefits of ESOPs for both the Business Owner and the Employees.

For the second time, Kelly Finnell, the ESOP Coach, appears on Good Morning Memphis on WHBQ Memphis this time to talk about ESOPs.

Kelly Finnell, the ESOP Coach, appears on Good Morning Memphis on WHBQ Memphis to talk about 401(k)'s and Roth IRAs.

Kelly Finnell, the ESOP Coach, appears on Eye Witness News on WPTY Memphis to talk about retirement.

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