ESOP Resources

At ESOP Builders, we pride ourselves on being experts on ESOPs in Canada. We’ve pulled some notes from relevant case studies to help contextualize your plan and understand why ESOPs have been growing in popularity and uptake in Canada over the last decade, and why they will be increasingly relevant as an exit option for the baby boomer generation. We hope you find the notes helpful and informative.

Passing on the Business to the Next Generation

Canadians will see a massive transfer of small business assets in the next decade – possibly more than a trillion dollars – but there’s a problem: many entrepreneurs don’t have a succession plan in place. Read More

Retain and repatriate Canadian high tech talent
Change Agents Seek Government Incentives

Over the past few years, separate lobbies have pressed the federal Minister of Finance to take action to stem the brain drain of knowledge workers to the United States. Trade organizations representing compensation planners and the high technology industry called on Mr. Martin to include changes in the 1999 and 2000 Budgets to encourage employee stock option plans (ESOPs) as a tool to attract and retain skilled workers. Perry Phillips, president of ESOP Builders, has previously led the charge to Ottawa with a delegation from the ESOP Association Canada. Mr. Phillips says the critical shortage of knowledge workers and the growing trend for high tech workers to accept jobs in the US has highlighted the need for the federal government to take fast action on competitive compensation measures such as ESOPs.

More than coffee brewing at Starbucks.

In the fast food industry where turnover rates of the predominantly part-time staff are as high as 250 to 300 per cent, Starbucks is different from almost all the others. The coffee chain’s turnover is a fraction of the industry norm. The difference? Starbuck’s part-time employees “partners” are eligible for the company’s stock option plan. Read More

A whopping profit for AVIS employees.

An ESOP with over 13,000 employee participants turned AVIS from a culture of uncertainty, where there were five turnovers in ownership in an 11-year time frame, to one of positive focus. Within three years of introducing the ESOP, AVIS was included in “100 Best Companies to Work for in America” and cited by Fortune as a corporation to model. Employee morale and participation drove profits steadily upward. When the company was sold in 1996, employee shareholders netted three-times the value of their shares.