Large firm shakes up business model with employee stock ownership plan

BDO USA, citing a desire to strengthen its business model in part to retain and attract talent, is preparing to become the first large public accounting firm to establish an employee stock ownership plan (ESOP).

The ESOP will be effective Aug. 31, according to a news release, giving more than 10,000 participating employees an ownership stake.

Wayne Berson, CEO of BDO USA, called the decision a “game-changer.”

“Amid the changing landscape of our profession, the ESOP unlocks the value of our firm today and embodies our strategy to sustain a strong, caring, and resilient business for tomorrow,” Berson said in the news release. “We are proud to establish this ESOP to invest in each other, so everyone who contributes to our success has the opportunity to benefit from it.”

The firm cited positioning itself positively to recruit and retain talent among the reasons it decided to make the change.

“Today’s talented professionals have many options in choosing where to start and build their careers,” Cathy Moy, chief people officer for BDO USA, said in the release. “BDO has long been distinguished by a culture which puts people first with a commitment to thriving together. The ESOP will be unique and innovative in our profession and supports our goal to be an employer of choice.”

The release described the ESOP as “a qualified retirement plan established as a trust, where current and future employees receive beneficial ownership in the company over time. Through the allocation of company stock, participating BDO USA professionals will be able to access a retirement plan that requires no out-of-pocket contribution, helping them plan for their future financial well-being.”

Added Steve Ferrara, chief operating officer for BDO USA: “The ESOP also has material benefit to the firm. It allows for continued investment in quality, as well as operations and growth strategies, while maintaining continuity in leadership and commitment to a longstanding vision and purpose.”

— To comment on this article or to suggest an idea for another article, contact Bryan Strickland at Bryan.Strickland@aicpa-cima.com.