Employee Ownership

//Employee Ownership

On worker cooperatives and workplace democracy

Think about the last job you held. As long as your check cleared, how much did you care about the company’s success? How much did you care about their goals and ambitions? Maybe a little, if you were a committed employee. Conversely, how much do you think the CEO or owner of the company cared

Johnny’s Pizza House celebrates 100% employee ownership

Johnny’s Pizza House has announced that the company reached its goal of becoming a 100% employee-owned organization. Founder Johnny Huntsman imitated the change, and work started in May 2000. Founded in 1967, Johnny’s Pizza House was supported and funded by members of the Huntsman family, friends of "Mr. Johnny," and some of the very first Johnny’s

CITIC Securities launches stock ownership plan

CITIC Securities, China’s largest full-service investment bank, disclosed its employee stock ownership plan late Monday, which will offer employees a total of no more than 10% of the company’s total A shares and H shares, The Paper reported. While each employee shall not hold more than 0.5% of the company’s total shares, they can still hold an

Insurance brokerage Bender converts to employee-owned structure

Bender Insurance Solutions, a third-generation family-owned company in Roseville, has restructured into an employee-owned firm. The move from family ownership to being an Employee Stock Ownership Plan-run company is seen as a way to prepare for succession and to ensure the company remains independent, said Jillian Bender-Cormier, brand manager and partner of the independent insurance brokerage.

Uber’s Great Idea to Offer their Drivers Equity at IPO Price

Uber and Lyft, the two ride-hailing giants, both are planning initial public offerings of their stock. And both of them are doing something interesting: offering their most valuable drivers cash bonuses that can be exchanged for equity at the IPO price — giving them the opportunity to buy in on the same terms as the

Consider An ESOP As Your First, Not Last, Resort

Despite appealing reasons for business owners to establish an employee stock option plan, or ESOP, an enormous knowledge gap exists that prevents many owners from even considering one.  Many view an ESOP as the last resort when contemplating an eventual retirement or succession plan, believing it too complicated. If that’s your view, let me address

CNC Indexing & Feeding Technologies Sells Company to ESOP

Mason, Ohio-based CNC Indexing & Feeding Technologies announces that the company is now owned by an Employee Stock Ownership Trust, effective immediately. In the transaction, current and future employees gain a beneficial ownership interest in the company without any personal monetary investment. The ESOP was developed to give back to CNC Indexing & Feeding Technologies’ employees and

Absolute Machine Tools Announces Sale of Company to ESOP

Lorain, Ohio-based Absolute Machine Tools announces that the company has been sold and is now owned by an Employee Stock Ownership Trust (ESOP), effective immediately. In the transaction, owners Steve and Courtney Ortner sold 100 percent of their ownership interest to a newly created ESOP, allowing current and future employees to gain a beneficial ownership interest in

Why a family-owned business should consider an ESOP

In the world of succession planning options, an employee stock ownership plan (ESOP) is an alternative to a third-party sale that warrants consideration from privately held business owners. An ESOP provides a tool for a business owner to create an internal, tax advantaged buyer for privately held stock without the need for the disruption of

The Bizarre Case of a Massive Employee-Ownership Flop

Much is said about the benefits of employee stock ownership plans, known as ESOPs: They're a good option for helping business owners tap into the value of their companies without engaging in the public markets. They have been shown to boost employee morale and to improve profits. But less is said about the potential downsides--and the downright

In Business for Ourselves

William Flynn started Franklin Street marketing 32 years ago and had a number of partners over the years. In 2015, when he started thinking about retiring, he transitioned the firm to an Employee Stock Ownership Plan (ESOP) where, instead of selling to a new buyer or closing shop, he turned the firm into an employee-owned business. “This

This Supermarket Is the Largest Employee-Owned Company in the World

Think about stock options and chances are, you picture the founders of successful startups whose shares are worth hundreds of millions on paper. As it turns out, the largest employee-owned company in the world is far from Silicon Valley. It’s Publix, a chain of more than 1,200 supermarkets based in the Southeast. The private company, which is based

ACCEND Construction launches in Chicago

ACCEND Construction LLC has opened its doors for business in Chicago. The general contracting firm is led by Andy MacGregor, president, an industry veteran who has headed some of Chicago’s largest projects in this space. The company will use an Employee Stock Ownership Plan (ESOP), making it one of the few general contractors to offer every

From the big stage to the political arena: It’s time for employee ownership to get its closeup

Liberalism is ascendant, at least in the Democratic Party. New Gallup polling just out shows that for the first time, more than half of Democrats identify as “liberal” as opposed to “moderate” or “conservative.” The left’s newly minted hero Alexandria Ocasio-Cortez is becoming the right’s new favorite foil. Her Green New Deal and amplification of

The Short Life of Enlightened Leadership (and How to Extend It)

As recently as the 1980s, many publicly traded U.S. corporations idealistically sought to spread their wealth among their employees. Generous benefits such as profit sharing, stock ownership, lifetime pensions, career-long training, and even job security were routine at such companies as AT&T, General Electric, Hallmark, J.C. Penney, Procter & Gamble, and Sears. But these practices mostly

What Can Nonprofits Learn from ESOPs?

The United States is in the midst of one of the largest intergenerational transitions in its history, as 10,000 baby boomers retire every day. While this “silver tsunami” has been written about extensively in terms of the healthcare industry, its economic impacts on the workforce, and the consequent need for affordable senior housing, the transition’s implications on business

How Bill Roark Built A Different Kind Of Company And Rocketed To Success

Spreading out from the base of Emerald Ridge in Northern Alabama all the way to the Tennessee River, Huntsville is the third largest city in the state. Long associated with the U.S. space program - both the U.S. Space & Rocket Center and the Marshall Space Flight Center are located here - Huntsville is also

Intervine Becomes 100% Employee Owned

One of the largest suppliers of wine to the world’s airlines and cruise ships has become 100 percent employee owned. Intervine, headquartered in California’s Napa Valley, became 100 percent employee owned through an Employee Stock Ownership Plan (ESOP). ESOP’s were established by the United States Government nearly 50 years ago as part of the Employee

How King Arthur Flour’s Unusual Leadership Structure Is Key To Its Success

In 2004, the leadership of King Arthur Flour gathered to formally sign over control from longtime owners Frank and Brinna Sands to the company’s employee stock ownership program (ESOP). The two had been gradually transferring shares in the Norwich, Vermont, flour maker to the ESOP since 1996 as part of a long-planned exit. Opposed to

Why The Boss At HB McClure Sold The Company To His Employees

When Bob Whalen became president and CEO of HB McClure back in 2008, the employees were nervous. He was taking over from the grandson of Herbert Bassett McClure, who had founded the Harrisburg, Pennsylvania, heating, ventilation and air-conditioning firm in 1914. The company, which serves both commercial and residential customers, had been profitable for a