Employee Ownership Foundation

Charting Your Own Future

"We understand that a well managed employee-owned company is not a destination, it is a journey..."

- J. Michael Keeling,
President of The ESOP Association


Approved Budget and Projects 2015

At the December 2014 Executive Committee Meeting of The Employee Ownership Foundation the 2015 EOF budget was accepted as well as the 2015 projects.The Executive Committee (“EC”) of the EOF is comprised of many of the same members of The ESOP Association (“TEA”)’s Board of Directors (“BOD”) also present at that meeting.Behind this tab are the following documents relating to the 2015 approved EOF budget and projects:

  1. Approved 2015 EOF budget and
  2. Attachments relating to the synopsis below.

This budget also assumes payment of $30K to TEA for TEA overhead expenses.

The following projects were approved for 2015:

▪ Kelso Fellowships:The success of this program, including case studies, employee ownership research and dissertations, etc. is due to the fact that this Rutgers University program penetrates academic institutions throughout the nation.Case studies, bios, and interviews with Kelso Fellows are available through links on the Foundation’s website to the Foundation for Enterprise Development (“FED”), Rutgers University and the Aspen Institute Center for Business Education’s (“Aspen”) CasePlace.org.In 2014 Kelso Fellows, both new Fellows, and some funding for prior Fellows to expand their initial work was budgeted at $83K.For 2015, $77.5K should be budgeted which would cover grants for the Fellows as well as the marketing and promotion of the Kelso Fellows program.

▪ 2014 General Social Survey (“GSS”):In 2015, EOF is already committed to fund its last payment on the 2014 GSS.Results of the 2014 GSS will be released in the first quarter 2015.The EOF 2015 funding will be $51K.

▪ Edmunson Scholarships:In 2015, funding the oldest EOF project, Edmunson Scholarships will likely continue as $15K for 12 scholarships.Trustee Janet Edmunson has headed the panel of judges to evaluate the scholarship submissions and to select the recipients.

▪ January 12 – 14, 2015Mid-Year Kelso Fellows Workshop:This Workshop is underwritten by a $25K contribution to EOF by Menke & Associates that is a pass-through to Rutgers.The contribution from John Menke was received in mid-December and payment to Rutgers University for this program has been made.There are approximately 15 Kelso Fellows attending, and total attendance of approximately 100.Fees are $1,350 per Fellow totaling $20,250.EOF pays overhead for attending Kelso Fellows and not counting the Menke $25K pass-through, EOF would budget $15K considering that not all invited Fellows attend the workshop.

▪ Academy of Management (“AOM”)Emerging Scholar Research Award Program:This is an award program originally sponsored by the Aspen Center for Business Education.The Aspen CBE withdrew its support, and FED President Mary Ann Beyster persuaded the Academy of Management, Human Resources section to sponsor a similar program.EOF agreed to jointly fund the AOM program with FED beginning 2012.The goal of the award is to attract young scholars for promising research in the field of employee compensation and involvement.It is anticipated that $3K will fund EOF’s share of the Emerging Scholar Program.

▪ Beyster Symposiumscheduled for June 2015:The Beyster Symposium will be held again in LaJolla, CA.In year 2014 $35K was budgeted for this Symposium, assuming $25K would be a pass-through from Menke & Associates, but such a contribution was not made. John Menke may also not be making a $25K donation for the Beyster Symposium in 2015.FED has ceased being the primary sponsor of the Symposium.Thus, in 2015 EOF should budget $45K for this Symposium.

▪ Aspen Institute’s Center for BusinessEducation:The Center, or “CBE” is a section of the famed Aspen Institute which EOF helps fund through the FED, CasePlace.org, which houses the Curriculum Library of Employee Ownership (“CLEO”), the single greatest repository of materials, research, etc. in the world on employee ownership.EOF budgeted $5K for 2014.In order to cover both CLEO as well as continuation of funding CasePlace.org it is proposed that $10K be budgeted for 2015.

▪ Contingency Fund:This fund covers costs that unexpectedly arise such as unanticipated research and project opportunities.At the EC meeting in December 2014 the EC budgeted $30K which should be appropriate for this line item.

An example of use of the contingency funds was EOF’s book purchase of copies of TheCitizen’s Share, authored by Drs. Blasi and Kruse of Rutgers University and Dr. Freeman of Harvard University.Dr. Blasi autographed copies of the book after speaking to a general session at the 2013 Las Vegas Conference for those making donations to EOF.He also autographed approximately 50 copies for Members of Congress who have demonstrated support for ESOPs.

Approved Research Projects:

A. If the NCEO can obtain the “green light” to begin a major collection of data about individual account balances to provide to EBRI, as is done for 401(k) accounts, EOF would budget $60K for the project.It should be noted, however, EOF may need to fund more than $60K, as most TPA’s state their costs of making their data totally confidential is more than they wish to spend.EOF may want to pay for these collection / sanitization costs in order to have this important project done.There is a possibility that EOF will have to contract directly with EBRI, and not use NCEO as a conduit for funds to EBRI.Before considering this step President Keeling has been in discussions with Dr. Joseph Blasi regarding this initiative, but still has received no concrete response to move forward with this project and/or to contact EBRI directly.

B. Another potential project would be the creation of an interim data set by Dr. Felice Klein, a scholar from Cornell University who is now at Michigan State University.Details about the creation of this interim data set are outlined on the attached e-mail sent by Dr. Joseph Blasi with a follow-up e-mail reflecting clarity on the details of the project from President Keeling.This potential project would cost approximately $15K.

UPENN/CEO Project – Meetings’ Overhead:Currently it is expected that the CEO program, “Leading In An Ownership Setting”, will be conducted in 2015.The 2014 program had just over $80K in revenue.It is feasible to project a net loss by the end of 2014 program of $10K to $20K, but it probably would be best policy to budget this meeting as making neither gain nor loss.

Employee Owners’ Retreat (“EOR”): This program has dwindled to one meeting a year.As usual, even with less than 30 attendees, it should be neither a gain nor loss.

Operations / Development:It is anticipated that these expenditure lines will not increase to any significant degree compared to 2014.Important to note, however, EOF has no office space, no staff (only one independent contractor), no computers, etc.Instead all of these infrastructure costs, and staffing, is by TEA.In sum, EOF still has a long way to go, in spending effectively in these areas.

The 2015 funded projects and the amounts budgeted for each of them would be as follows:

Project Budgeted
Kelso Fellowships $ 75.0K
Kelso Fellowships for former Kelso Fellows $ N/A
General Social Survey $51.0K
January 12 – 14, 2015 Mid-Year Kelso Fellows Program $ 40.0K
Academy of Management Employee Participation
& Ownership Emerging Scholar Research Award Program
Beyster Symposium scheduled for July 2015 $ 45.0K
Aspen CBE $10.0K
Edmunson Scholarships $15.0K
EBRI Database Development $60.0K
Michigan State University Dataset $15.0K
Contingency Fund $ 30.0K
TotalFunded Projects Budget: $346.5K

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