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Summary of ESOP Incentives
|Common Misconceptions|ESOP Research
About Leveraged ESOP Buyouts
ESOP Research
Difference in Corporate Performance Post-ESOP vs. Pre-ESOP
| Annual Sales Growth | +2.4% |
| Annual Employment Growth | +2.3% |
| Annual Growth in Sales/Employee | +2.3% |
| Average Increase in Productivity | +4.5% |
| Projected over ten years, an ESOP company with these differentials would be a third larger and more profitable than a comparable non-ESOP company and would be two-thirds more valuable. |
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SOURCE: Rutgers University, Kruse and Blasi 1998.
Productivity After ESOP| Productivity |
No. of Companies
|
Percent
|
| Strongly Improved | 39 | 17 |
| Somewhat Improved | 142 | 61 |
| No Impact | 33 | 14 |
| Negative Impact | 1 | - |
| Not Sure | 19 | 8 |
| Totals | 234 | 100 |
SOURCE: The ESOP Association - 2002