Glossary of Terms on The Grid

A consumer-owned electricity distribution co-op. These power about 56% of the land mass of the United States.

Refers to businesses who have qualified with the SBA as certified veteran-owned small businesses

The operating of an employee ownership plan, and all requirements associated, whether by law or by plan document.

The accrual basis of accounting is the concept of recording revenues when earned and expenses as incurred.

The time it takes for a selling owner to move from exploration of succession options through a finalized sale.

Any business in which two or more family members are involved and the majority of ownership or control lies within a family.

Refers to any special accounting considerations for EO companies

Inventory management is the entire process of managing inventories from raw materials to finished products. It efficiently streamlines inventories to avoid shortages and gluts.

An individually owned retirement savings vehicle or account.

The rights of managers, employees and other operational actors within a business to handle the day to day functions/operation of the business. These rights can be exercised more laterally (flatly) or vertically (hierarchically).

Types of transactions with an employee ownership plan which, if engaged in, would or could create some kind of legal liability, e.g., "self dealing" or other forms of conflict of interest.

The types of decisions which corporate governors (directors) may make on behalf of owners such as officer appointments, executive compensation, and dividend policy, or call for certain social or environmental concerns to be prioritized.

A servant-leader focuses primarily on the growth and well-being of people and the communities to which they belong. The servant-leader shares power, puts the needs of others first and helps people develop and perform as highly as possible.

Accredited CE on EO

Debt restructuring is a process used by companies, individuals, and even countries to avoid the risk of defaulting on their existing debts, such as by negotiating lower interest rates. Debt restructuring provides a less expensive alternative to bankruptcy when a debtor is in financial turmoil, and it can work to the benefit of both borrower and lender.

First-loss capital or First-loss reserve is money invested with the highest risk of loss in a deal. It acts like a buffer, absorbing losses before impacting other investors.

Cooperatives work for the sustainable development of their communities through policies approved by their members.

Employee prosperity refers to the wealth an employee can accumulate as an employee of a company, such as through ESOP stock allocation, worker co-op capital accounts, or EOT profit sharing

Preferred stock represents ownership in a company with higher claims on dividends and asset distribution compared to common stock

The history of employee ownership which includes some easily defined pivotal moments such as the passing of ERISA in 1974 thanks to Louis Kelso and Russell Long

The likelihood that, if desired by a business owner, that their business can grow rapidly in terms of KPI's such as market share, EBITDA, new customer acquisition cost, etc.

A situation when an individual wants to sell his company for more money than the buyer is willing to pay

The ability of a business to anticipate, prepare for, adapt to, and recover from disruptive events or conditions, in order to maintain or restore an acceptable level of functioning and performance.

Holding companies come in many forms. ESOP Holding Companies, regular holding companies, etc

The idea of popular education (often described as "education for critical consciousness") as a teaching methodology came from a Brazilian educator and writer named Paulo Freire, who was writing in the context of literacy education for poor and politically disempowered people in his country

Any structural limitations inherent to being an EO company, e.g., an ESOP cannot pay more than fair market value when the company's stock is sold

Any unique EO company considerations in the appraising of company value, e.g., ensuring rigor that would satisfy regulators in an ESOP appraisal

The reduction of ownership percentage of existing shareholders in a company when new shares are issued by the company

Operational efficiency is primarily a metric that measures the efficiency of profit earned as a function of operating costs.

A requirement of ESOP plans, this formula is proportionate to each participant's compensation, per capita, and points allocation based on compensation and service. Compensation needs to be defined for allocation purposes.