New Age Industries’ 135-worker plant in Southampton is being cited as an example of employee stock ownership plans by Jared Bernstein, a top economic adviser to President-elect Joe Biden, writes Joseph N. DiStefano for The Philadelphia Inquirer.

ESOPs are worker-owned and enjoy several meaningful tax advantages over for-profit companies.

In his report for an ESOP trade group, Bernstein uses the manufacturer that makes AdvantaPure, BrewSavor, and Vergenics tubing as a case study.

He details how Ken Baker sold his family-founded company to his employees in several stages, from 2006 to 2019.

The business is now 100 percent employee-owned and its shares have increased tenfold since the ESOP started, which is more than three times the rise in the S&P 500.

Bernstein explained that the tax incentives that have been set up to create ESOPs are potent and require no sweetening.

The reason why the adoption of the model has been so slow is the lack of information about ESOPs and the non-existence of an expert “bench” that could provide advice.

Read more about New Age Industries at The Philadelphia Inquirer by clicking here.

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