II. TRASOP PREVALENCE BY INDUSTRY GROUP UTILITY INDUSTRY: 84.2% OF 38 COMPANIES IN 1978 SURVEY, 69.2% of 26 companies in 1977 survey. IN 1978, RELATIVELY STRONG TRASOP CLUSTERINGS WERE ALSO FOUND IN THE FOLLOWING INDUSTRIES: SOURCE: HEWITT ASSOCIATES SURVEY OF TAX REDUCTION ACT ESOPS 1978, 1977 (COPYRIGHT) HEWITT ASSOCIATES Source: 14.4% 26.2% 1978 - 530 COMPANIES 1978 423 COMPANIES 41.1% HEWITT ASSOCIATES SURVEY OF TAX REDUCTION ACT ESOPS - 1978, 1977 (COPYRIGHT) HEWITT ASSOCIATES IV. TRASOP CHARACTERISTICS ELIGIBILITY/PARTICIPATION MOST PLANS COVER ALL OR MOST EMPLOYEES MEETING AGE/SERVICE REQUIREMENTS. 40.7% of plans cover all or most employees. 34.3% of plans cover all or most salaried and non-union hourly employees. 25.0% of plans cover all or most salaried employees. SEVERAL PLANS EXCLUDE OFFICERS, DIRECTORS OR MEMBERS OF EXECUTIVE STOCK OR INCENTIVE PLANS. COVERED COMPENSATION THERE APPEARS TO BE A TREND TOWARD USING AN INDIVIDUAL EARNINGS CEILING OF LESS THAN 30% of plans in the 1978 study used a lower ceiling. BENEFIT AMOUNT THE AVERAGE ANNUAL EMPLOYEE BENEFIT IS LESS THAN $200. OF THE COMPANIES RESPONDING TO 62.6% expect an average employee benefit of less than $200. HEWITT ASSOCIATES IV. TRASOP CHARACTERISTICS (CONT'D) MATCHING EMPLOYEE CONTRIBUTIONS FEW PLANS USE THE ADDITIONAL % TAX CREDIT. 16.4% of plans in the 1978 study include the matching feature (23 companies). 2.5% of plans in the 1977 study include the matching feature (1 company). HEWITT ASSOCIATES SOURCE: HEWITT ASSOCIATES SURVEY OF TAX REDUCTION ACT ESOPS - 1978, 1977 (COPYRIGHT). SURVEY OF TAX REDUCTION ACT ESOPS HIGHLIGHTS REPORT April 1978 SURVEY HIGHLIGHTS During the months of January and February 1978, Hewitt Associates conducted a survey of the 1000 largest industrial companies and the 50 largest commercial-banking, life-insurance, diversifiedfinancial, retailing, transportation, and utility companies as listed in the Fortune Directory. This report presents survey highlights of the complete report that was provided to survey participants. Purpose of Survey The survey concerns Tax Reduction Act Stock Ownership Plans (TRASOPS)--the type of employee stock ownership plan which meets the requirements stipulated in the Tax Reduction Act of 1975. The primary purpose of the survey was to gather information on the prevalence of such plans and to examine some important plan characteristics of those TRASOPs that have been implemented. Survey Participants Five hundred thirty companies participated in the survey. Participating companies span a wide cross section of business and industry and fall into the general groupings shown below: |