Employee Stock Ownership Plan

/Tag: Employee Stock Ownership Plan

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

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

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

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

What to consider when planning for an exit and an ownership transition

As business owners evolve in their life cycle, moving on from the business they built becomes top of mind. But what form that takes, and whether or not the end ultimately serves the owner’s retirement goals, are important questions to answer. Jim Altman, Middle Market Pennsylvania Regional Executive at Huntington Bank, says that’s why owners shouldn’t

Infoverity Becomes 100% Employee-Owned Through Employee Stock Ownership Plan

Infoverity, a leading systems integrator and global professional services firm, announced today that it has completed a transaction that will transition the company to a 100% employee-owned organization. With the implementation of an Employee Stock Ownership Plan (ESOP), Infoverity founder and owner, Matt Wienke, will sell and transfer stock to a qualified retirement trust that

Why Mandy Cabot Chose Not To Sell Dansko For $150 Million

In 2005, Mandy Cabot was set to sell Dansko, known for its closed-back wooden clogs, to Timberland for $150 million. She and her Danish husband, Peter Kjellerup, had built the company from scratch starting in 1990, importing clogs from Denmark and marketing them to customers in the U.S. who appreciated the shoes’ comfort, durable construction and

To make companies moral, make the employees the owners

In the minds of many entrepreneurs, taking a company public, with shares trading on a public stock exchange, represents the pinnacle of success–a dream come true. For EA Engineering founder Loren Jensen, that dream proved a nightmare. Located in Hunt Valley, Maryland, EA Engineering, Science and Technology is an environmental consulting firm with 500 employees and $140

Bandit Industries Goes Employee Owned

Bandit Industries in Isabella County, MI, has been looking for a buyer for nearly five years. After all that time, they settled on a solution, turn the company over to their employees. The wood chipper manufacturer is shifting to an Employee Stock Ownership Plan, giving every employee shares in the company that can be paid

Rettew employees achieve full ownership of company via ESOP

Rettew Associates recently completed a seven-year transition into being entirely employee-owned through an employee stock ownership plan. Rettew is a Lancaster-based engineering and environmental consulting company with 350 employees. It marks its 50th anniversary this year. The process was completed when the ESOP bought out the stakes in Rettew held by George R. “Hank” Rettew,

Bandit completes shift to employee ownership

Bandit Industry’s transition from family-to-employee ownership is complete. The highly anticipated move was completed Nov. 1, according to a press release from the company. It came after two previous attempts at ownership change failed. Over the course of the summer, ownership of the company was transitioned into an Employee Stock Option Plan. While that means

Setting A Company On The Right Path

(This column concludes the fictional story of Ben, a company president who has faced some tough decisions. The first installment in the series can be found here. With our next column, in January, we will forgo the appeal of fiction and return to our customary mixture of reportage, analysis, and business advice. We hope you will

AmeriBen becomes employee owned

AmeriBen, which employs hundreds of people in Meridian, is shifting its management model to be employee-owned, the company announced Tuesday. AmeriBen became employee-owned Oct. 31 by establishing an employee stock ownership plan, a release from AmeriBen said. Along with roughly 700 employees at its new building in Ten Mile Crossing, AmeriBen has 150 staff members

Employee Stock Ownership Plans: Can They Close the Wealth Gap?

Much has been written about the growing trend of income inequality in the US; we hear less often about the wealth divide, which is even more stark. While the top 10 percent of US households today own 51 percent of the country’s wealth, the bottom 50 percent own one percent. With no savings to fall back on, families

Workers in ESOPs Have Double the Retirement Savings

S Corporations are likely to be fully employee stock ownership plan (ESOP) owned, and S Corporation ESOPs, in particular, tend to prepare workers much better for retirement than other types of workplace retirement savings plans, according to the National Center for Employee Ownership (NCEO). ESOP participants have an average retirement balance of $170,326, more than

Employees Run The Show At One Mesquite Casino

When we think of people who own casinos, we think of the larger-than-life figures – your Benny Binions, Howard Hughes or Kirk Kerkorians of the world.  And there are stockholder-owned casinos: Wynn, Sands and MGM for instance. One casino in Nevada is doing things differently. The Eureka Casino Resort in Mesquite -- 214 rooms -- is one of only two casinos in the country owned

Paper company sued over ESOP transactions

The fiduciary of the Appvion Inc. Retirement Savings and Employee Stock Ownership Plan sued the bankrupt paper company's former management team, its board of directors and a slew of advisers for allegedly inducing employees to take money out of their 401(k) accounts to purchase 100% of the stock of Appvion's parent company, Paperweight Development Corp.

Three Things That Will Boost Employee Engagement

A grade of 15 percent isn’t close to passing in any classroom. If a wise teacher saw that figure, he would take swift action to understand the student’s problem. The same should hold true for both employees and employers when they hear global employee engagement rates are hovering at 15 percent , per Gallup’s research. Or that a