ESOPs: A Rare Point of Bipartisan Agreement in a Divided Time.

I recently had the opportunity to attend a panel at the National Center for Employee Ownership Forum in Philadelphia “A Big Tent: The Movement Expand Employee Ownership” featuring a distinguished group of experts on employee ownership including Mary Sullivan Josephs, Megan Walsh Thompson, Anna-Lisa Miller, Loren Rodgers and Daniel Massey. The discussion was inspiring, thoughtful and engaging, and one of the most striking takeaways was how strongly employee ownership resonates in the public sphere, as indicated by the statistics shared. In today’s highly polarized political environment, it feels as if everything is partisan, and that Democrats, Republicans and Independents agree on almost nothing. Yet one area of broad consensus remains: Employee Stock Ownership Plans (ESOPs), and it is wildly bipartisan earning support across the aisle. Amid sharp divisions in Washington, ESOPs stand out as a rare, practical solution that everyone can get behind ensuring that ESOPs remain a vital and growing part of the American economy.

At their core, ESOPs align with values championed on both sides of the political lines.

• For conservatives and business-minded leaders, ESOPs strengthen the backbone of the American economy—private businesses. They keep ownership local, encourage long-term stability, and reward hard work with financial upside. They also provide business owners with tax-advantaged succession planning tools that preserve legacy while ensuring continuity.
• For progressives and labor advocates, ESOPs put equity directly in the hands of employees, helping workers build wealth, close the income gap, and secure retirement savings. They foster a sense of dignity and empowerment on the job, while improving productivity and lowering turnover.

Evidence That ESOPs Work

The data makes it clear why ESOPs continue to attract advocacy across party lines:

• Companies with ESOPs are more resilient, with lower default rates than their peers.
• Employees in ESOPs accumulate substantially more retirement savings than workers in traditional firms.
• Studies show ESOP companies experience higher productivity and growth, while also strengthening communities by keeping businesses rooted locally.

Policy Support and Momentum

Over the past several decades, legislation enhancing ESOPs has repeatedly passed with overwhelming bipartisan support. From tax incentives to financing structures, both Congress and state legislatures recognize ESOPs as a powerful tool for sustaining American businesses while building the middle class. New resolutions introduced in recent years have drawn co-sponsors across the political spectrum, showing that ESOPs are not only enduring, but gaining fresh momentum.

A Common-Sense Solution in Uncertain Times

Amid sharp divisions in Washington, ESOPs stand out as a rare, practical solution that everyone can get behind. They protect jobs, create wealth for workers, and help entrepreneurs transition their businesses smoothly—benefits that resonate with policymakers regardless of party affiliation.

As more companies explore employee ownership, the bipartisan support behind ESOPs ensures that this model will remain a vital and growing part of the American economy. It’s proof that even in divided times, we can still unite around solutions that work.