NEW BRUNSWICK, N.J. – Employee ownership, a bipartisan-supported business model that rewards owners, improves company performance, reduces employee turnover, and enables workers to build wealth on top of wages, is getting a major boost in the tri-state region.
Rutgers University’s New Jersey/New York Center for Employee Ownership (NJ/NYCEO) and the Pennsylvania Center for Employee Ownership (PaCEO) today announced a historic partnership focused on expanding the number of employee-owned businesses in all three states by the year 2030.
Ken Baker, a national leader in developing employee ownership, is supporting the collaboration with a $1 million endowment. Baker is the former CEO of NewAge Industries in Southampton, Pa., a manufacturer of biopharmaceutical and industrial fluid transfer systems. He established employee ownership at NewAge in 2006 and co-founded the PaCEO in 2016. Today, he serves on the board for both organizations.
“Employee ownership holds tremendous potential to strengthen businesses, preserve jobs, reduce wealth inequality, and boost local economies across the region,” said Bill Castellano, Executive Director of the NJ/NY Center for Employee Ownership. “One of the biggest obstacles is a lack of awareness. This new partnership, with generous support from Ken Baker, will help us to solve that problem by reaching more business owners than ever before.”
“Rutgers University has the nation’s finest academic research program for employee ownership,” said Kevin McPhillips, Executive Director and CEO of the Pennsylvania Center for Employee Ownership. “This collaboration will combine the best in thought leadership and successful on-the-ground experience in expanding employee ownership. It is an honor to partner with Rutgers, and it’s a marvelous opportunity for both our organizations. We are very excited to get started.”
“Combining critical research from Rutgers and state-of-the-art technology and methods from the PaCEO and The Baker Project, this partnership has the opportunity to provide a tremendous economic future for working people and communities throughout the U.S.,” said Ken Baker, Chairman of 100% employee-owned NewAge Industries and Co-Founder and Chairman of the Pennsylvania Center for Employee Ownership. “Our goal is to change lives for the better. It is my honor to support this important endeavor.”
There are nearly 700 businesses headquartered in New Jersey, New York, and Pennsylvania with an employee stock ownership plan (ESOP), employing more than 1.4 million people and holding about $48 billion in stock. This includes mostly small and medium-sized businesses and stock market companies. Participating workers receive an ownership stake, at no cost, enabling them to share in their employer’s success and build significant wealth.
Recent ESOP transitions in the tri-state region include:
- Keena Healthcare Technology, an IT firm based in Skaneateles, N.Y., near Syracuse, announced on June 17 that it is now 100% employee-owned through an ESOP.
- Haverford Systems, an AV integration company based in Downington, Pa., west of Philadelphia, became 100% employee-owned through an ESOP on January 23.
- Imagine Early Learning Centers, a childcare provider in New York City, announced on January 21 that it has transitioned to 100% employee ownership through an ESOP.
- SilcoTek Corporation, an advanced coating technology and service firm in Bellefonte, Pa., near State College, became employee-owned through an ESOP on January 1.
- Paula Teacher and Associates, a Pittsburgh-area service provider for people with special needs, became 100% employee-owned through an ESOP in December 2025.
- Becht Engineering BT, an engineering and consulting firm in Warren, N.J., announced in January 2025 that it is now 100% employee-owned through an ESOP.
- Next Evolution, a fire suppression company and hazardous chemical recycler in Metuchen, N.J., became 100% employee-owned through an ESOP in November 2024.
With a supportive culture, ESOP companies typically have higher productivity and lower employee turnover than their competitors, research shows. However, many business owners do not realize that an ESOP is a viable option for their company: a knowledge gap that is especially urgent for those who are nearing retirement without a succession plan.
The new, four-year collaboration between the NJ/NYCEO and PaCEO will address this gap through education, outreach, and the deployment of The Baker Project’s new AI-based assessment tool, which helps business owners decide if an ESOP is right for them.
Pennsylvania State Senator Frank Farry (R-Bucks) said, “Employee-owned companies have long been an important part of the economic vitality of communities across my district, creating quality jobs and helping working families build long-term financial security. NewAge Industries, one of those successful employee-owned companies in my district, has demonstrated how this model benefits both employees and employers. I commend Ken Baker and PaCEO for their leadership and commitment to this important initiative.”
New Jersey State Senator Andrew Zwicker (D-Middlesex/Mercer/Somerset/Hunterdon) said, “New Jersey is facing a generational transition in business ownership, so we need new policies that will keep successful companies throughout the state operating and growing in the years to come. Employee ownership is a proven model that helps workers build wealth, strengthen their businesses, and preserve well-paying jobs in their communities.”
New Jersey Assemblywoman Lisa Swain (D-Fair Lawn) said, “Business owners want to know their company is in good hands long after they step away. By building a true symbiosis between employees and employers, ESOPs not only give workers a meaningful stake in the company’s future success but allow founders to entrust their legacy to those who know the business inside and out. I'm thrilled to see this collaboration introduce the benefits of employee ownership plans to more businesses across the region.”
Pittsburgh Mayor Corey O’Connor (D) said, “Employee ownership helps businesses stay local, creates wealth for working families, and strengthens the neighborhoods that make Pittsburgh special. Pittsburgh launched the Citywide Task Force on Employee Ownership to show how local government can expand opportunity, create more pathways to ownership, and make it easier for businesses and workers to succeed together. We congratulate the Pennsylvania Center for Employee Ownership and Rutgers University on this exciting partnership and look forward to benefitting from its research and insights as we strive to make Pittsburgh every family's first choice.”
Pittsburgh City Councilmember Erika Strassburger (D) said, “Employee ownership keeps good jobs in our communities and lets workers share in the success they help build. Pittsburgh has been proud to lead on this through our Citywide Task Force, and I am glad to see Pennsylvania, New Jersey, and New York joining forces to bring this proven model to more businesses and more workers across the region.”
National Center for Employee Ownership (NCEO) Executive Director Loren Rodgers said, “If employee ownership is going to reach its potential, we need more collaborations like the one between Rutgers and the Pennsylvania Center for Employee Ownership. The whole is bigger than the parts, and the NCEO is eager to help this new partnership succeed.”
|
State |
Businesses with an ESOP |
Active Workers Covered by ESOPs |
Employer Stock Held by ESOPs |
|---|---|---|---|
|
New Jersey |
110 |
535,186 |
$15.5 billion |
|
New York |
288 |
556,495 |
$16.0 billion |
|
Pennsylvania |
289 |
363,856 |
$16.4 billion |
| *This table is current as of 2023, the last year for which federal data are available. | |||
Press Contacts
Steve Flamisch
NJ/NY Center for Employee Ownership, Rutgers University
848.252.9011 (cell)
steve.flamisch@smlr.rutgers.edu
Emalie Martzall
Pennsylvania Center for Employee Ownership
717.945.3420 (cell)
emalie@paceo.org
About Us
The NJ/NY Center for Employee Ownership (NJ/NYCEO), a technical assistance center within the Rutgers Institute for the Study of Employee Ownership and Profit Sharing, works to raise awareness of employee ownership, increase the number of employee-owned companies, and improve the economy in both states.
The Pennsylvania Center for Employee Ownership (PaCEO) is a 501(c)(3) nonprofit that helps business leaders understand the values of employee ownership and raises awareness about employee ownership's existence among public officials, employees, members of the media, students, teachers, nonprofit leaders, consumers, and others across the Commonwealth.
The Baker Project for Employee Ownership (BPEO), a non-profit initiative of the PaCEO, helps companies explore and adopt employee ownership for business succession. The BPEO uses AI and tech-supported models to create tools for business owners, and collaborates with industry experts, academic institutions, and thought leaders to provide resources and trainings.
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