What is it about?
This case study presents an ESOP-owned holding company, Folience, describing the company’s history and holding company structure and strategy. The purpose is to highlight several advantages of the ESOP-owned holding company and concludes with lessons learned and suggestions for research. Creating more employee-owned companies and more employee owners could have positive social and financial benefits for employees, their families, and their communities.
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Why is it important?
Acquisition by an ESOP-owned holding company provides a less complicated and less costly path for companies to transition to an employee owned structure. The holding company portfolio creates many benefits including synergies, access to capital, and dampening of volatility through diversification. There is great potential to increase access to employee ownership by increasing the number of ESOP-owned holding companies.
Perspectives
As the 'silver tsunami' progresses and companies need to change ownership, the ESOP-owned holding company is a path to protect good paying jobs in locally owned companies, address income and wealth inequality, and create opportunities for employees to earn a secure financial future for themselves and their families. This case study illustrates one example, that of Folience.
Daniel Goldsten
Rutgers University New Brunswick
Read the Original
This page is a summary of: A case study of an ESOP-owned holding company: lessons learned and suggested research topics, Journal of Participation and Employee Ownership, October 2024, Emerald,
DOI: 10.1108/jpeo-11-2023-0011.
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