Employee Stock Ownership Plans (ESOPs) enable agency owners to transition ownership to their employees. This model promotes job retention, cultural unity, and provides a succession plan without selling to larger entities. ESOPs have increased in popularity in media agencies since the pandemic, giving employees a vested interest in agency success while also offering potential tax benefits for selling owners. Notable agencies like Collective Measures and Butler/Till have successfully implemented ESOPs, viewing it as a viable exit strategy, particularly for those not experiencing significant growth.
Employee Stock Ownership Plans, or ESOPs, allow agency owners to sell their stakes to employees, granting them stock in the company, typically held in a trust.
ESOPs have become favored in the media agency community post-pandemic as a method to give employees a stake in the agency's health and future.
Agencies like Collective Measures and Butler/Till have adopted ESOPs to help maintain culture, serve as a retention tool, and provide succession without selling to larger firms.
For founders, the ESOP route provides an exit strategy while potentially offering tax benefits and protecting against unwanted acquisitions.
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