The Pittsburgh Citywide Task Force on Employee Ownership
The Pittsburgh Citywide Task Force on Employee Ownership was formed to bring together stakeholders from local government, state government, economic development groups, nonprofits, businesses, banks, and higher education to promote and help create employee-owned businesses from Employee Stock Ownership Plans (ESOPs) to Employee Owned Business Enterprises in Pennsylvania.
This has the potential to dramatically change the lives of Pittsburghers for the better. And it is already becoming a model for municipalities throughout the nation.
- ESOP companies are three to four times more likely to retain staff, less likely to make pay cuts, and more likely to prepare employees for retirement than the standard business model. S Corporation ESOPs provided higher distributions per participant than 401(k) plans.
- Businesses with employee ownership often see greater productivity, higher profitability, and increased revenue.
- When formed properly, an ESOP transaction preserves the legacy of the business that an owner helped create, while providing tax and financial benefits to the former business owner, the company, and the employees.
- Employee ownership keeps jobs in our communities, providing long-term benefits to the local economy.
Please visit https://www.pghtaskforce.org/ if you are interested in learning more about employee ownership or if you are wondering if converting to an employee ownership model is viable for your business.
Check out the City Cast Pittsburgh Podcast from September - Pittsburgh Is Ahead of The Curve In Employee-Owned Businesses
Goals and Objectives
Assess the economic landscape in the Council Districts of Pittsburgh to determine the opportunities/challenges for the creation of employee-owners.
- Who are the target businesses?
- Design a plan for communicating the value and benefit of employee owners to potential individuals and businesses.
- How do we share information, get into the neighborhoods?
- Create a “Toolkit” that allows interested businesses and individuals to both learn and take steps to convert to employee ownership.
- What are the systems and methods we need to compile to give to potential businesses?
Design a funding model for both ESOPs and Co-Ops that makes employee ownership possible and practical.
- How do we create a funding model that truly assists?
Look at potential legislative opportunities to both promote and enable the growth of employee ownership.
- What might the role of government be? What have other municipalities/states accomplished?