Brief dive summary: In a survey of construction companies with employee stock ownership plans, Prairie Capital Advisors found they performed well in several key areas, with nearly 68% reporting that the pandemic had not affected their operations in terms of sustainability, cash flow, liquidity, and culture. Or commitment to buy back shares. The vast majority of ESOP programs reported that access to capital was not an issue over the past year, and 82% said they did not expect that to change in 2021. In addition, 79% said the pandemic had not affected their bank financing and nearly 67% said they They did not plan to cut expenses in 2021. On the other hand, the Coronavirus has negatively affected 50% of the ESOP plans surveyed, and 30% of companies said that hiring skilled workers is more difficult. Additionally, over 79% experienced some level of disruption in the supply chain in 2020. Dive Insight: The ESOP benchmark will see existing shareholders sell all or part of their shares to the program for allocation to employees. Quotas are allocated to eligible employees according to their share of total salaries. The vesting period (the time an employee must work for the company in order to achieve equity ownership) is three to five years, and employees must sell their shares back to ESOP when they leave the company to another employer or retire. There are other types of employee ownership – such as profit sharing, worker cooperatives and stock-buying programs – but according to the National Employee Ownership Center’s list of the largest employee-owned companies are the most common, according to the National Employee Ownership Center’s list. NCEO’s list of companies with a certain level of employee ownership includes several AEC companies such as: Parsons Black, Veatch HDR Graybar Electric Rosendin Electric Burns, McDonnell Engineering Performance Contracting Austin Industries Gensler Terracon CDM Smith Hensel Phelps Construction Cianbro Swinerton Builders HNTB McCarthy Building Co, study found Conducted by Rutgers University and market research firm SSRS, the ESOPs with the majority of employees across all industries outperformed other companies during 2020. Some of the key points of the study were that ESPOs were: between three to four times the likelihood of retaining employees. Less likely to cut working hours and less likely to reduce wages more quickly to protect employee safety and health at the start of the pandemic through early distribution of personal protective equipment and sterilization programs and allowing employees to work from home.
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