Do ESOPs actually improve company performance — or is it just theory?

In Episode 22 of ESOP Radio, Trevor Gilmore and Ben Spadt break down new research from Rutgers University showing a measurable connection between employee ownership and increased productivity. 

Drawing from large-scale Bureau of Labor Statistics data and years of ESOP company analysis, the study found that ESOPs produce meaningful productivity gains across a wide range of businesses — even when management structures differ significantly. 

Trevor and Ben walk through the key findings and explain what they mean for:

•  existing ESOP companies 
•  business owners evaluating succession options 
•  and leadership teams building long-term employee ownership cultures 

The discussion also explores why ESOPs work best alongside strong communication, transparency, and incentive structures — not as standalone retirement plans.

In This Episode

•  What the new Rutgers ESOP productivity study found 
•  Why ESOP companies showed measurable productivity gains 
•  How ownership percentage affects employee engagement 
•  Why ESOPs can work across different management styles 
•  The importance of combining ESOPs with bonus incentives 
•  How transparency and communication influence results 
•  What business owners should know before implementing an ESOP 

Key Takeaways

•  ESOPs were associated with productivity increases of nearly 7% overall 
•  Larger ownership stakes correlated with even stronger gains 
•  ESOPs performed well regardless of management sophistication 
•  Pairing ESOPs with bonus structures produced stronger outcomes 
•  Communication and transparency remain critical to long-term success

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