A comprehensive analysis of employee stock ownership plans (ESOPs) has for the first time quantified the cumulative wealth these plans have distributed to American workers over a 16-year period. The study, titled "More Than What Remains: Measuring the Wealth ESOPs Have Already Delivered," was released by the Employee Ownership Expansion Network (EOX), a nonprofit based in Arlington, Virginia, with data analysis by Aaron Dean, founder and CEO of Deanalytics.
Using a proprietary dashboard that processed roughly 100,000 Form 5500 filings from 2009 through 2024, the researchers identified $141.8 billion in total ESOP distributions paid out to participants and beneficiaries. This figure, which has never been calculated on a national cumulative basis, includes payouts from ongoing plans as well as those triggered by plan terminations, often due to company sales or ownership changes.
Of the total, approximately $113.1 billion came from active ESOPs during normal operations, while about $28.7 billion—roughly 20%—originated from ESOPs entering termination. One notable case highlighted in the report is Dynetics, an employee-owned defense contractor in Huntsville, Alabama, acquired by Leidos in 2020. When the Dynetics ESOP was wound down, it distributed approximately $977 million to about 2,260 participants across 2019 and 2020. The report includes five additional company case studies illustrating how large payouts can materialize during ownership transitions.
Steve Storkan, executive director of EOX, emphasized that the study shifts the focus from assets still held in plans to wealth already delivered. "For years we have talked about how much wealth exists inside ESOPs, but we have not celebrated the wealth that has already reached employees," he said. "This research gives us a powerful new way to tell that story."
For financial advisors, the data adds a measurable economic dimension to succession planning conversations, which often center on tax efficiency and deal structure. The study suggests ESOP distributions can be transformative not only at retirement but also at earlier career transitions. Dean, who worked at an employee-owned company for five years before founding Deanalytics, said his own ESOP distribution helped stabilize his finances and provided seed capital for his firm. "I experienced firsthand what an ESOP distribution can mean in someone's life," he noted.
The timing is significant, as a large cohort of business owners approaches retirement, making succession planning a critical issue across the advisory industry. Storkan believes too few advisors are equipped to present ESOPs as a viable option. "Every retiring business owner should consider employee ownership as a succession option," he said. "Too few business owners seriously consider employee ownership, and too few of the people advising them understand how much wealth employee-owned companies have already created."
The study also tracked formation and termination trends, identifying 3,943 new ESOPs and 3,839 terminations from 2009 through 2024. New formations outpaced terminations every year from 2016 onward, though the researchers caution that net changes in the national count can mask significant activity in both directions. State-level data, based on plan sponsor headquarters, shows distributions, contributions, and formations by state, which could help community leaders and policymakers gauge local impact.
For advisors, the findings offer a concrete data point to anchor discussions with business-owner clients. As retirement income planning becomes more complex, ESOPs represent one tool in the succession toolkit. The study's $141.8 billion figure underscores the wealth-building potential of employee ownership, a message that may resonate with the majority of workers who lack a formal financial plan. With inflation hampering retirement saving, ESOPs could offer a meaningful supplement to traditional retirement vehicles.
