HUNTSVILLE, AL – Employee stock ownership plan (ESOP) companies have become popular throughout the United States with around 6,467 in total as of the end of 2023. This number also represents more than $1.6T in overall assets across the nation.

Here in Huntsville, one such company has been growing its employee access to part ownership over the past few years and has been recently recognized for such advancements.

Torch Technologies announced that the company has been added to the National Center for Employee Ownership (NCEO) 2023 Employee Ownership 100 list. NCEO is a nonprofit research and membership organization supporting the employee ownership community since 1981.

“This recognition is a testament to our incredible team’s dedication, hard work, and shared commitment. Employee ownership has been a cornerstone of our success, fostering a culture of collaboration, innovation, and shared accomplishment. As we celebrate this achievement, we reaffirm our commitment to empowering our employees and building a future where everyone has a stake in our collective success. Together, we will continue to grow, thrive, and light the pathway to freedom,” said Torch Technologies President Brad Walker.

The Employee Ownership 100 list includes the largest broad-based employee-owned companies in the US that the NCEO could verify using governmental or other credible third-party sources. Most are ESOP-owned, and one is a cooperative. To be on the list, companies must be at least 50% employee-owned; most on the list are 100%. Collectively, these broad-based plans employ close to 685,000 people.

Employee ownership generally and employee stock ownership plans more specifically have a long history of showing tangible benefits to both companies and employees while creating a viable model for business succession.

In 2019, total contributions to ESOP accounts were $89 billion (or an average of $6,420 in contributions per participant). The average ESOP account balance is more than double the average 401(k) account balance at a closely matched non-ESOP company offering only a 401(k) plan; in addition, a large majority of ESOP companies offer a 401(k) plan alongside the ESOP, further amplifying the benefits.

For more information on ESOPs, please visit www.nceo.org. For more information on Huntsville’s Torch Technologies, please visit torchtechnologies.com.