Employee Stock Ownership Plan

/Tag: Employee Stock Ownership Plan

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

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.

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

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