Nypro Inc. (A): The Employee Stock Ownership Plan (ESOP) Harvard Case Solution & Analysis

Nypro, Inc., a world-wide leader in manufactured precision plastic products headquartered in Clinton, Massachusetts, had one of the biggest employee stock ownership plans in the United States and was frequently held up as an example of best practices in that place.
Nypro Inc. (A) The Employee Stock Ownership Plan (ESOP) Case Study Solution

During the 2008 recession, a modest percent of the company’s worker stockholders had determined to cash in their own shares, which the firm was required to repurchase. It somehow managed to outperform many of its competitors, although the stock redemptions were draining the business of the funds needed to pursue valuable market opportunities. Nevertheless, some considered the company’s current trajectory was not sustainable. Its visionary leader had vowed never to sell the business or take it public, but many believed it was time when an offer was made to buy the company. See nutritional supplements, pupil and 9B14N029, 9B14N030 spreadsheet.

Learning Objective:

To introduce the Employee Stock Ownership Plan to students.

To understand both the benefits and risks of employee ownership.

Publication Date: 09/11/2014

This is just an excerpt. This case is about Finance

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Nypro Inc. (A): The Employee Stock Ownership Plan (ESOP)

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