For more on this deal in the state of PE, let's bring in Pete Stavro, partner in global co-head of private equity at KKR. Uh Pete, congrats on the deal. It's a top three deal for the firm ever.Also for f further validation of the employee ownership program, which you have been a longtime and early champion of. Um, of course, it also happens to be a service provider to an area that's skyrocketing, which is data centers. Um, so I'm just curious kind of what you attribute the success of this deal to and do you ...

If taxes disappeared tomorrow, would workers actually see more money—or would companies just keep the difference? Billionaire entrepreneur and Cost Plus Drugs co-founder Mark Cuban says that question misses the bigger point. In a 2019 GQ video where he answered fan questions, Cuban focused on something else entirely: who owns the company before the money ever shows up. The premise sounds fair, but he says it's flawed The question put to Cuban was straightforward. If his tax rate dropped to zero, would ...

Democratic Republic of Congo will enforce a long-dormant rule requiring local employee ownership for mines https://t.co/bB8tQBJo3N ...

The group met at the Stein Eriksen Lodge in Deer Valley from July 8 to 10, with an agenda headlined: “Employee Ownership Summit: Redefining Independence.” A welcome packet included a letter from Francais, a box of chocolates and a white baseball cap that read, “100% EO / Redefining Independence.”He ended up with 22 firms, all of which met the $3 billion asset threshold, were 100% employee-owned, and were fee-only fiduciaries serving individuals, not institutions. They hailed from 16 states, managing a total ...

Core Idea - The concept of employee ownership is being promoted as a means to enhance worker engagement and retention while allowing employees to build wealth, addressing issues such as high quit rates and low job satisfaction in the workforce [3][4][15]. Employee Ownership Model - Employee ownership is structured to provide workers with stock or options without requiring them to invest out of pocket, aiming to offer a year’s worth of income as a benefit [5][8]. - The model involves placing a block of ownership in a trust, which is liquidated upon a company sale or IPO, allowing employees to receive cash or tradable stock [6][11]. Case Study: Ingersoll Rand - Ingersoll Rand serves as a case study where employee ownership transformed the company culture, increasing stock ownership from 86 senior executives to 20,000 employees, resulting in workers earning approximately $1 billion and reducing the quit rate by 90% [7][19]. Challenges and Transparency - Implementing employee ownership is complex, requiring education on business operations and financial transparency to ensure employees understand their contributions and the value of their ownership [16][12]. - Regular updates on company performance and valuations are provided to employees to maintain transparency and engagement [12][13]. Policy and Future Aspirations - The initiative aims to modernize existing policies like the Employee Stock Ownership Plan (ESOP) to encourage broader participation in employee ownership, with aspirations to expand this model to more companies and workers [20][21]. - There is bipartisan support for the idea of employee ownership, indicating a potential for policy changes that could incentivize companies to adopt this model [19][20].

Core Insights - Employee ownership plans, such as employee stock ownership plans (ESOPs), are seen as beneficial for retaining and attracting workers in the U.S. manufacturing sector as many business owners approach retirement [1][2] Group 1: Employee Ownership Plans - The U.S. has over 6,500 ESOPs with total assets exceeding $1.8 trillion, primarily in the manufacturing sector [2] - Proponents argue that ESOPs help employees build wealth and provide a community-focused alternative for business owners instead of selling to third parties [2] - ESOPs can offer competitive advantages during challenging economic times [2] Group 2: Employee Retention and Business Performance - In 2020, ESOP food companies had a median quit rate of 6%, compared to 20% for non-ESOP companies, indicating better employee retention [3] - ESOP companies were 1.5 times more likely to avoid closure over a 10-year period compared to non-employee-owned firms [3] Group 3: Suitability and Challenges of ESOPs - ESOPs are particularly suitable for owners who have a strong connection with their employees and wish to maintain a local community presence [4] - Successful businesses are essential for ESOPs to function effectively; they are not ideal for struggling companies [5] - The "silver tsunami" refers to the impending retirement of 2.9 million U.S. business owners aged 55 or older, creating a potential market for ESOPs as exit strategies [5] Group 4: Case Study - Eddie Leventhal, a business owner, converted his companies to an ESOP as part of his retirement planning, highlighting a practical application of this ownership model [6]