Study Finds 100% ESOP Defense Firms Outperform Other Defense Service Firms

Numerous studies show that 100% employee-owned companies perform better than their non-employee owned companies and have higher retention. A new study focused on 100% employee-owned defense service firms conclusively shows that they perform better than non-employee owned defense firms. The power of employee-ownership benefits the Department of Defense by a wide margin. MTSI is a 100% employee-owned engineering services and technology solutions company delivering first-choice capabilities to solve problems of global importance.

According to the Employee-Owned Contracts Roundtable, the study by Dr. James Hasik, “highlights the value of federal government contractors organized as private subchapter S corporations wholly owned through an employee stock ownership plan (ESOP). The study confirms that 100% ESOP federal contractors receive higher Contractor Performance Assessment Rating System (CPARS) scores than all other firms. The study further highlights that 100% ESOP federal contractors are more resilient to acquisition, which helps avoid consolidation of the defense industrial base.”

Another key takeaway from the study is that ESOPs tend to resist being acquired.

Click here to view the Employee-Owned Contracts Roundtable press release.

Click here to view the “Outperform and Outlast: 100% Employee-Owned Contractors Top the Charts” report by Dr. James M. Hasik, PhD.

Click here to learn more about MTSI’s 100% employee-ownership, ESOPs, and career opportunities.