mployee stock ownership plans (ESOPs) are on the rise. In different industries, two articles this month spotlight employee-owned businesses. Vanessa Orr reports in “Handy Helpers” that Alaska Hand Rehabilitation founder Linda Glick sold her practice to her employees in 2020. And “Passing the Keys to Employees” by Alexandra Kay describes how the ESOP that owned 15 percent of the Avis Alaska franchise upped its stake to 100 percent, while the Halcro family retains its legacy on the board of directors.

While a relatively rare form of ownership in Alaska now, ESOPs are positioned as an enticing option for the generation who established businesses during the pipeline boom of the ‘70s and are reaching retirement age. Another article this month, “It’s Never Too Early to Plan to Sell” by Tracy Barbour, shows how the considerations involved in selling a business in the first place might point to an ESOP as an elegant exit.

Alaska companies with partial or full ownership by ESOPs range in size from 5 participants at Environmental Health Sciences-Alaska in Eagle River to the 245 at Alaska Power & Telephone Company, which manages small utilities statewide. Familiar storefronts such as Sagaya Corporation and Alaska Mining & Diving Supply are employee-owned as well. This does not count out-of-state ESOPs with Alaska offices, such as Kiewit, JD Steel, HDR, or Graybar.

The ESOP Association is a trade group that represents employee-owned businesses nationwide and advocates for this form of ownership. Greg Facchiano, vice president of government relations and public affairs, was kind enough to share some resources for this edition of Alaska Trends.