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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowLafayette-based Radian Research Inc. is the first participant in a state initiative that helps companies become employee-owned.
Radian received $3.6 million in financing yesterday from the state to make the transition. State Treasurer Richard Mourdock created a program that has $50 million available to companies.
The goal is to encourage Indiana companies to embrace employee stock ownership plans, known as ESOPs. The plans essentially function as a retirement program for employees, who borrow money to buy a stake in the company from the owner. As the loan is paid back out of profits, employees get company stock based on their longevity and salaries.
“Employee-owned companies have a proven track record of creating wealth for their employees, encouraging the entrepreneurial spirit from within, and increasing company productivity,” Mourdock said in a statement.
Radian Research develops energy meter testing systems and current transformer testers for electric utilities, energy meter manufacturers and municipalities. It has nearly 70 employees.
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