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ESOP COMPANIES HAD BETTER YEAR IN '92

 WASHINGTON, March 29 /PRNewswire/ -- According to the responses of 460 company members of the Washington-based ESOP Association, 55 percent of the firms in the annual "performance survey" had a better year in 1992 compared to 1991. This is a further sign that corporate performance has improved nationwide. (21 percent of the companies performed "worse" in 1992 compared to 1991, and 23 percent performed "about the same.")
 ESOPs (Employee Stock Ownership Plans) give employees a financial stake in a company's future success, thereby helping to increase productivity while also providing a source of retirement income. In well over 90 percent of the ESOP companies nationwide, the establishment of the ESOP did not result in wage or benefit reductions for employees.
 Among survey respondents, 54 percent said that establishing an ESOP "improved" productivity; only 1 percent said it "harmed" productivity. The survey results indicated that ESOP companies that have established employee participation plans are more likely to have experienced improved productivity than those without such plans, by a margin of 65 percent to 40 percent in the survey. Sixty percent of manufacturing firms in the survey had established an employee participation plan.
 Eighty-one percent of the 460 companies, all of whom sponsor ESOPs, said that establishing an ESOP had been a "good decision that helped the company"; 17 percent said it had made "no discernible difference"; and only 2 percent considered it a "bad decision that harmed the company."
 THE ESOP ASSOCIATION FOUNDATION'S
 2ND ANNUAL ESOP ECONOMIC PERFORMANCE SURVEY
 This research survey was sent to all company members of The ESOP Association and is based on 460 responses.
 1. How did your company perform in 1992?
 55 percent Better than in 1991.
 21 percent Worse than in 1991.
 23 percent About the same as in 1991.
 2. How has the ESOP affected the overall productivity of your
 company's employees?
 54 percent Improved it.
 1 percent Harmed it.
 45 percent Had no discernible effect.
 3. Has your company created any employee participation program
 since establishing the ESOP?
 52 percent Yes.
 48 percent No.
 4. Overall, how do you now evaluate your company's decision to
 establish an ESOP?
 81 percent A good decision that has helped the company.
 2 percent A bad decision that has harmed the company.
 17 percent A decision that has had no discernible effect on
 the company.
 -0- 3/29/92
 /CONTACT: Stuart Anderson of The ESOP Association, 202-293-2971/


CO: The ESOP Association ST: District of Columbia IN: SU:

MH-TW -- DC002 -- 0344 03/29/93 08:57 EST
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Copyright 1993 Gale, Cengage Learning. All rights reserved.

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Publication:PR Newswire
Date:Mar 29, 1993
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