There has arguably never been a more important political moment for Americans – from policymakers to constituents – to rally behind commonsense, bipartisan solutions that advance American workers and the American economy. And while most were hard-pressed to find such a policy this past election cycle, we at Entertainment Partners (EP) know there’s one sound economic policy that works for all: employee stock ownership plans (ESOPs). Fortunately, our legislators, at the state and federal levels, agree with us, too.
As leader of our talent operations at Entertainment Partners, I witness the benefits of employee ownership every day, as we have proudly been a one hundred percent employee owned company since 2004. ESOPs ensure employees can take ownership of their work while building their retirement savings with a plan that consistently outperforms traditional options. In fact, the average retirement account for an S corporation ESOP worker is three to five times larger than a typical 401(k). With a recent Experian report suggesting 71 percent of Americans save too little for retirement, employee ownership is a reliable way to provide meaningful retirement savings for millions across the country.
At Entertainment Partners, not only do our workers have higher retirement savings, but they also have skin in the game that boosts productivity, inspires teamwork, and ensures employment stability even through difficult times. Before, EP was the largest provider of payroll services in the entertainment industry; now, we do all of that while giving our more than 1,000 employees a stake in our success.
In the twelve years since adopting a model of employee ownership, we have grown rapidly, today employing more than 900 workers at offices located in ten states. This success has been fueled by the fact that every interaction in our business involves a dedicated owner, meaning our employees feel an obligation to themselves, their coworkers, and their customers to deliver high-quality service in a fulfilling work atmosphere.
And it’s not just EP that benefits from employee ownership. ESOPs have an especially strong impact on our home state. According to a National Center for Employee Ownership (NCEO) study, we are one of over 850 ESOP companies employing more than one million workers in California. That’s one million neighbors, friends, and family who support and strengthen our communities through hard work every day. Additionally, as one of only a handful of U.S. states with an Office of Employee Ownership, California has demonstrated a commitment to expanding employee ownership for more workers, providing advice for businesses looking to transition to an ESOP.
We feel a strong sense of pride to part of the employee ownership success story, which is why we are compelled to be active champions of this business model. That’s why we recently hosted Representatives Kevin Brady (R-TX-8) and Adam Schiff (D-CA-28) at our Burbank location to discuss our experience with employee ownership. It’s our responsibility to share our experience with policymakers, particularly as legislation is pending in Congress. We are grateful leading members of Congress have taken a keen interest in employee ownership. It’s clear that ESOPs have the power to change how Americans see their companies and their future, regardless of politics.
From advocating for better ESOP loan incentives to working with retiring business owners to determine a company’s next steps, there are dozens of ways to extend the benefits of ownership to employees throughout our state and country. For Entertainment Partners, we’ve seen firsthand how ESOPs create a thriving ownership culture – and how getting an inclusive stake in success can be a value we all share.
Entertainment Partners (EP), headquartered right here in Burbank, is the largest provider of payroll services to the entertainment industry and employs over 1000 workers in ten U.S. states.