One thing that the drilling industry has not progressed on is the future. Yes, we have higher safety standards, better environmental regulations, Tier-4 engines, and we can drill deeper in a shorter amount of time than ever before. But what about the true future? We need better recruiting tools for young professionals to want to be part of the industry. At the end of our careers there has to be an endgame in place for the owner, employee and business.
An employee stock ownership plan (ESOP) can strengthen the future of many drilling companies. At the end of 2014, more than 7,000 companies participated in an ESOP and over 13.5 million employees took part in the benefits. An ESOP is created when a sole owner, or family of owners, wants to sell a portion of their company’s shares to their employees. The ESOP creates a way to sell slowly or transfer ownership of a company to its employees. The major benefit of an ESOP is that the people who helped build the company are taken care of. The owner gets to transition gradually out while leaving in place the people that know and care the most about the business’ future.