"Numerous studies have shown that workers in employee owned companies receive higher wages, better benefits, and are less likely to have their jobs sent offshore."
— Employee Ownership Foundation
As an ESOP company, Barr Brands International is 100% owned by employees. Under employee ownership, Barr continues to fuel the growth of the company and the financial security of our employee-owners through the acquisition of companies and brands compatible with ours.
Operating as an ESOP, major acquisitions were completed by Barr in 1997, 1998, 2003, 2006, 2008 — and most recently in 2011 with the acquisition of Microban International. With Microban, Barr Brands International has become one of the pioneers of a new territory — bringing the advantages of employee ownership into the international arena.
How an ESOP works
The stock of a company is purchased by an ESOP trust through a loan. The stock is distributed to individual employee accounts, with the loan being repaid over time with revenues from company operations.
Because employee ownership is encouraged by the U.S. government, ESOPs also enjoy numerous tax advantages — in addition to the numerous advantages ESOPs provide to all parties:
Owners of a profitable, closely held business are provided with a means to free up their assets, provide for continuity of the business operation and look out for the long-term interests of employees.
Employees benefit from higher wages and retirement savings. A study by Washington State found ESOP participants earned 5 - 12% more than employees in comparable non-ESOP companies and had retirement savings three times larger.
ESOP businesses with participative management have an annual growth rate that's 8 - 11% higher than they otherwise would, according to a study done by the National Center for Employee Ownership.
Consumers receive products that are produced by an engaged and motivated work force that's committed to uncompromising quality.