Employee Ownership

//Employee Ownership

Saalex Becomes Employee-Owned Company

Saalex Corp. has announced that the company is now owned by its employees through an employee stock ownership plan. Employees of the Camarillo engineering and information technology services company will receive stock allocations annually that will vest over a period of time and increase in value as the company grows. Chief Executive Travis Mack said

How employee ownership can prevent loss of beloved businesses and local jobs

As baby boomers age, the nearly 25 million jobs they have created nationwide are at risk. In Santa Clara County alone, roughly 15,000 boomer-owned businesses account for nearly 50% of private businesses that have employees, according to research by Project Equity. Only 15% will successfully pass to the second generation, and there will not be

How employee stock ownership becomes a succession plan

As succession strategies go, the employee stock ownership plan might be the ultimate twofer. For Joe Reeves and Ron Butt, co-founders of Louisville, Kent.-based ARGI, the pursuit of a viable succession plan for their $2.6 billion financial planning firm was the original objective, but the ESOP provided the added bonus of giving all employees a potential stake in the RIA's

How to create a construction company legacy

Every construction company and its owners eventually face succession issues. Owners who choose to ignore succession planning until an unexpected event forces the issue may face fewer choices, little time to react and a decrease in company value. However, proper planning can create peace of mind and increase the chances of a smooth transition that

Studying Ways to Reshape the Workplace and Boost Middle Class Wealth

Hiring a diverse workforce enables companies to tap a larger pool of knowledge and perspectives, creating opportunities for significant growth. It can also lead to the occasional conflict, as employees from vastly different backgrounds must learn to coexist. Joo Hun Han, an assistant professor of human resource management at the School of Management and Labor

Make Your ESOP Work for YOU

Congratulations. You’ve completed your paperwork, met the Department of Labor criteria and successfully established your employee stock ownership plan (it took a while, didn’t it?). You’re now half the way there. In order to perform better and reap the clear benefits an ESOP can generate, you must couple employee ownership with employee engagement. It starts with

Bernie Sanders Wants Companies to Give Employees Ownership

Bernie Sanders, one of the leading Democratic candidates for the presidency in 2020, recently revived his push to give American workers more ownership of the businesses they work for. The Vermont senator told the Washington Postlate last month that businesses should be required to put some of their stocks into employee-controlled funds, so workers get dividends. Two other

We bought the company! Vermont takes leading role in employee-owned businesses

Jason Patnaude calls it the worst day of his life. Patnaude, 54, attended vocational school in Essex after graduating high school, leaving early to install Megabucks machines. Two and a half years later, he was let go when the machines became obsolete. "My daughter was three months old, we built a house, and bought a

Blue-collar capitalists

IDA TARBELL, the huge muckraker of the early twentieth century, not simplest wielded her pen against Standard Oil. She also feeble it to advocate for better versions of capitalism. In “Recent Ideals in Enterprise”, a e book from 1916, she explained how William Cooper Procter, a pioneering Episcopalian, launched profit sharing in 1887 and come

ESOPs rising: Employee ownership gaining traction

When people think of employee-owned businesses, large companies such as grocery chain WinCo — with scores of locations across the western U.S. — spring to mind, said Poncho Baker, the new CEO of Ritchie Trucking in Fresno. But for owners who want to see their business and life’s work continue, and for workers looking for

Retaining skilled workers with an employee ownership plan

Jeff Heck had a problem. His company, ATEC Steel, a steel fabricator of storage tanks and other structures, had grown exponentially since he opened the doors in 2006. Maintaining this growth required that his major customers would come back anytime when they needed a steel fabrication, such as an above-ground storage facility. To find and retain

An IPO could make these workers wealthy – or leave them holding nothing

Got your first job at a start up? This workplace perk gives you a shot at a windfall — if you’re lucky. When offered as part of a compensation package, stock options give workers an opportunity to own a slice of the company. It can be an attractive perk. That’s because while smaller, newer companies

ESOPs More Valuable Than Just a Retirement Savings Vehicle

Studies have shown that companies that sponsor employee stock ownership plans (ESOPs) see positive results for revenue and employee productivity, but more recent studies show ESOPs provide greater retirement savings for employees and can reduce wealth inequality. Loren Rodgers, executive director of the National Center for Employee Ownership (NCEO) in San Francisco, says, “It looks like

Is employee ownership about to have a moment?

The move to advance employee ownership is gaining momentum. As employee-owned businesses have grown steadily over the last decade, demographic trends and a surge of interest in a more equitable economy have helped put these business structures on the national agenda. One key factor is a phenomenon known as the ‘silver tsunami.’ An unprecedented number

Billionaire-Owned Hearing Aid Maker Faces Lawsuit Over Employee Stock Plan

Three former employees of America’s largest hearing aid manufacturer, Starkey Hearing Technologies, are suing the company and a group of its current and former executives for failing to uphold their fiduciary duties tied to an employee stock ownership program. The suit, filed in Minnesota district court on Monday, alleges that the program lost nearly $37

Sharing profits and ownership with workers not only make them happier, it benefits the bottom line too

Near-record low unemployment has companies fumbling to find the best ways to recruit and retain workers. Our research suggests a sure-fire way to do just that: give them a real stake. By that we simply mean sharing some of the profits and even ownership with the men and women who are fundamental to their companies’ success. Most Americans say

Making it in Vermont: $140 million firm takes employee ownership seriously

You know the entrepreneur who can fix anything on the place with the materials at hand? That’s Proctor-based Carris Reels Inc., only on a different scale. Although the premise of the reel company is simple (“we make squares into circles,” as CEO Dave Ferraro puts it) there are parts involved, and most of those parts

Unprecedented Political Consensus Found in Employee Ownership

Research released today by the Employee Ownership Foundation (EOF) and the Rutgers School of Management and Labor Relations at The ESOP Association's 42nd National Conference in Washington, DC shows that employee owned businesses enjoy uniquely broad support among Democrats, Republicans, and Independents. Nearly three-fourths of respondents (72 percent) to the General Social Survey would rather work for an

Wilson Electric is now 100% employee-owned

Wilson Electric Services Corp. announced that the company’s ESOP (Employee Stock Ownership Plan) has purchased the balance of the company shares, making it 100 percent employee-owned. Wilson Electric, a leader in the electrical contracting industry, has been a partial ESOP since 2005, with employees owning 47 percent of the company’s overall shares. On May 21,