We behave like owners because Cisco-Eagle employees are owners. We have a direct stake in the company's success because we all own shares in Cisco-Eagle. Every time you speak with one of us, you're talking with an owner who knows that pleasing customers will increase the value of his or her stock in the long run. We're committed to providing the best possible customer service. When you succeed, Cisco-Eagle succeeds. When Cisco-Eagle succeeds, all of its employee-owners benefit.
But don't take our word for it: the facts speak for themselves. Rutgers University studies show that ESOPs appear to increase sales, employment, and sales per employee by about 2.3% to 2.4% per year over what would have been expected absent an ESOP. Employee owned companies are more productive than other companies. The same study finds that ESOP companies stay in business longer than non-ESOP companies, meaning that they are more stable and able to handle long term customer relationships. Rutgers also found that employee owned companies are more productive than others: The average estimated productivity difference between ESOP and non-ESOP firms is 5.3%, while the average estimated pre/post-adoption difference is 4.4%.
A 2004 study found that 88% of companies declared that creating employee ownership through an employee stock ownership plan was "a good decision that has helped the company."
This increased stability, productivity, and ownership means that you'll find Cisco-Eagle to be more productive, stable, and service-oriented than ever. We're positive that as we grow and prosper, it will be because we have empowered owners in every position through serving our customers.
An Employee Stock Ownership Plan (ESOP) is an employee benefit plan which makes qualified employees of a company stock owners in that company.
In 1974, congress passed the Employee Retirement Income Security Act (ERISA), which governs employee benefit plans and established a statutory framework for ESOPs. Today, there are approximately 11,000 ESOPs in place in the U.S. , covering 10 million employees (10% of the private sector workforce)
In April of 2000, Cisco-Eagle made the transition to an employee-owned company by implementing our ESOP plan. Cisco-Eagle's employees currently own 70% of the company.