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Reply #15: ESOPs rarely work. We had a local steel company [View All]

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doc03 Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Nov-02-09 10:16 AM
Response to Reply #8
15. ESOPs rarely work. We had a local steel company
that went ESOP, it lasted maybe 10 years. When the company was making money the employee owners took all the profits instead of putting them back in the business, they were bringing in $30,000 profit sharing checks for a few years. Then when a recession came and they started losing money they were forced to sell shares of the company to raise cash until eventually they lost control of the company. There were many that warned about that happening but nobody listened, the (owners) lived high on the hog for a while. A socialist business model can rarely survive within a Capitalist system.
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