Cambridge, MA — May 1, 2009 — In an uncommon move among consulting companies, Interaction Associates Inc. (IA) announced today its conversion to an employee-owned company through an Employee Stock Ownership Plan (ESOP). The move is a shift for IA from being privately held by a limited group of employee shareholders to status as a majority employee-owned company with approximately 50 full-time employees. The change is effective immediately.

IA celebrates its 40th year in 2009 — four decades of innovating advanced solutions that help mostly Fortune 500 clients develop strong leaders, collaborate successfully, and navigate change.

"This ESOP is part of the ongoing evolution of Interaction Associates," said Linda Dunkel, President and CEO of Interaction Associates. "In conjunction with our 40th Anniversary, this shift to 100% employee ownership is a natural step forward and a strong recommitment to our core principles of shared responsibility and an empowered workforce. Our employees already 'think and act like owners,' so this makes sense from their point of view, and it’s valuable from a financial standpoint, too,” added Dunkel.

IA has long walked-the-walk of its core principles, including becoming the first company of its kind to establish a non-profit institute – the Interaction Institute for Social Change (IISC) to foster collaboration in the nonprofit and public sectors around the world. The company contributes 10% of its annual pre-tax profit to IISC, and employees commit at least half of their mandatory 10-days/year of pro bono work to the Institute.

"Becoming an ESOP serves our employees, our clients and our communities," said Marybeth Tahar, Chair of the Board of Interaction Associates. "With every employee now an actual owner in the firm, we all are even more invested in the long-term success of our partnership with clients, and with community organizations our employees serve as part of our regular pro bono efforts."

An ESOP is a vehicle that provides company stock to employees through a trust. The U.S. Congress created the framework for ESOPs in 1974 to encourage companies to allow employees to take a financial stake in their employer. According to the National Center for Employee Ownership, there are approximately 11,500 ESOPs in the United States today that cover about 11 million employees. Research suggests that employee ownership increases productivity and profitability, and helps companies attract and retain top talent.