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Why Employee-owned Companies Are Better at Building Worker Wealth

Knowledge at Wharton

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Comparison of ESOP and 401k Assets and Payouts

This chapter compares the average amount in an ESOP and a 401k, stating that the ESOP has a mean value of $132,000 while the 401k has about $63,000. It also explores the potential payout employees can expect after 20 years in an ESOP, which can be four to ten times their current salary.

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