ESOP Builders Inc
All About ESOPs
All About Us
Resources
All About Your Legacy
National Network
 

HomeResourcesLatest Survey Results

Our Newsletter

Free Feasibility Survey

About the Books

Case Studies

Contact Us

Site Map

The $10 Trillion Opportunity
Order now! The $ Trillion Opportunity Read what others are saying   Read What
  Others Are
  Saying

Recent Survey Results

Survey Results

OCTOBER 2001 CANADIAN ESOP SURVEY RESULTS

During October and November 2001, ESOP Builders Inc. polled 17 Canadian owned public companies with some sort of employee share ownership or stock option plan in place. This is what we found out:

  • 53% of respondents have a Stock Option Plan but no ESOP.
  • 35% of respondents have an ESOP or Share Purchase Plan only.
  • 6% of respondents have a Profit Sharing Plan used to buy stock.
  • 6% of respondents have both a Stock Option Plan and an ESOP.
Of the companies with Stock Option Plans:
  • 80% have broad based plans and 20% have key person plans.
  • ESOP participation rates range from 25% to 50%.
  • 70% of respondents administer their plans internally.
  • 12% of respondents outsource the administration of their plans.
  • 18% of respondents administer their plans internally in combination with outsourcing.
Common problems with the administration of plans include:
  • Trouble finding reliable outsourcing companies.
  • Fulfillment of buy/sells.
  • Internal accounting complexity.
  • Outsource administrator not knowledgeable.
  • Employee information not user friendly.
  • Start up issues.
  • Eight out of seventeen companies reported no real problems with the administration of their plans.

Incentives and Ownership Trends in the IT Workplace

March, 1999

HIGHLIGHTS AT-A-GLANCE

  • 90% of all respondents would consider more incentives than they currently have in place -- in particular financial incentives -- to attract key employees and improve productivity.
  • 24% of all respondents have Employee Share Ownership Plans (ESOPs) in place. Of the companies that did not have ESOPs (76% of respondents)
  • 80% would consider implementing an ESOP.
  • 90% of companies with ESOPs say the plans have helped attract employees.
  • 75% of companies with ESOPs say they have been a factor in retaining staff.
  • Flexible hours and tuition and training are the most widely offered incentives. 68% of firms offer flexible hours; 50% tuition and training options.
RESPONSES

1. What are you currently doing to attract and retain key employees?

  • 37% of respondents offer profit sharing. This was the most frequently used financial incentive. 21% of responding companies offer stock options.
  • 24% have open book management. These firms tended to offer the widest mix of financial and lifestyle incentives.
  • Likewise, the 14% of respondents with recreational facilities on site also tended to offer a broad mix of incentives.

2. What are your annual staff-turnover rates?

  • 73% of respondents have less than 15% turnover. 68% of the companies said that's not good enough. They would consider more incentives to attract and retain employees.
  • 20% have a 16% to 30% churn rate.

3. How would you describe your employee group in terms of motivation and productivity?

  • 60% say their employees are highly motivated. 75% say they are committed and productive.

4. Would you consider more incentives to improve the above?

  • 90% would consider more incentive to improve both motivation and productivity.

5. In what age range is the majority of your employees grouped?

  • 90% of the employee group are under 40.

6. Do you have an exit strategy?

  • 68% have no exit strategy. Of those indicating a strategy, it is unclear what the majority plan to do.
  • 35% of those with an exit strategy plan to take the company public.

7. When would you take your company public?

  • 59% within 3 to 5 years.
  • 41% unsure.

8. Do you currently have an ESOP in place?

  • 24% have an ESOP.
  • 76% do not have an ESOP.

9. To whom does the ESOP apply?

  • 83% of plans are broad based.
  • 17% are key person based.

10. For those companies with an ESOP, what percentage of eligible employees joined the ESOP?

  • 50% of ESOPs have 100% participation.

11. What percentage of company shares do employees hold?

  • 92% of respondents indicate 20% or less.
  • 58% indicate less than 10%.

12. Have you had an improvement in the following areas since implementing the ESOP?

  • 50% of respondents note productivity improvements.
  • 90% indicate an improvement in attracting employees.
  • 75% say the ESOP has helped in retaining employees.
  • 43% indicate an increase in sales.
  • 50% indicate more competitiveness.
  • 88% indicate an upsurge in employee interest.
  • 57% indicate an improvement in communications.
  • 17% indicate that profits increased due to the ESOP.

13. If you don't currently have an ESOP, would you consider offering some form of ownership to employees?

  • 80% would consider an ESOP.
  • 85% of those would consider a broad based plan.

14. How do you think your employees would respond to the following statements?

  • 92% felt owing stock would make their employees more interested in the company's financial performance.
  • 90% felt employees would be proud to own stock in the company.
  • 82% felt stock ownership would make employees want to stay with the company.
  • 65% felt employees would find work more satisfying.
  • 75% felt employees would be likely to work harder.

Responses to question 14 correlate closely to American studies asking ESOP employees their perspectives on working as an owner rather than as an employee.

THESE SURVEY RESULTS CANNOT BE USED OR PUBLISHED WITHOUT THE EXPRESS WRITTEN CONSENT OF ESOP BUILDERS INC.

 
Copyright © 2004 - 2011 ESOP BUILDERS INC.
Web design by VH Web DeZine
 
| ESOP Company | ESOP Rule | ESOP Plans |