Employee Stock Ownership Plan

/Tag: Employee Stock Ownership Plan

Benching your VC: The employee buyout playbook

Grow or sell? It’s the ultimate dilemma for startups. This dilemma can become even more acute when you’re the CEO of a VC-funded startup. You want to develop your product, while driving sales and marketing, so that the business can reach its full potential, but your VC’s fund has reached maturity and they want you to sell

NewAge Industries announces 100% employee ownership

At a company-wide meeting held on 5 September, it became official: NewAge Industries is now entirely owned by its employees through its ESOP (Employee Stock Ownership Plan). The event was the culmination of a plan first considered by CEO Ken Baker more than two decades ago. “I’ve had a lot of other business owners ask

Ownership of Yankee Publishing to Transfer to Employees

Yankee Publishing Inc., a family-owned business for 84 years, announced the sale of 30% of its shares to the company’s employees through an Employee Stock Ownership Plan or ESOP. The company, with 85 employees based in offices in Dublin and Manchester, New Hampshire, publishes Yankee, The Old Farmer’s Almanac, New Hampshire Magazine, Family Tree Magazine,

‘A pathway to the American dream’

Bolstered by a vision of employee ownership, OwnersEdge Inc. is in growth mode. The City of Pewaukee-based holding company is headed by Lisa Reardon, who has expanded the business to include others in the field of niche technological solutions and expertise. All are structured as employee stock ownership plan companies, or ESOP companies. Reardon worked

Fighting Capitalism With Capitalism

As a human-resources professional, Jennifer Briggs got used to firing people. She’d refer to it as “layoffs,” “right-sizing,” or whatever euphemism her employer wanted her to use at the time. She was a foster child turned single mother who had relied on food banks to feed her kids, and, as unpleasant as it was, managing

Summers Trucking employees meet new owners: themselves

Summers Trucking employees gathered for breakfast Saturday morning at the Ephrata American Legion. After ham and eggs and all the fixings, the 91 employees learned that the Summers family owners, Becky, John and Ken, had transferred their shares in the business to an employee stock ownership plan (ESOP). With that move, the Summers management triad

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 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

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

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

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

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,

The business of the future is ethical, sustainable, and employee-owned

You may not know it, but when you’re buying clothes from Eileen Fisher, you’re buying from an employee-owned company. Fisher founded the company in the early 1980s, but instead of going public, she sold 30% of the company to her own employees in 2006 (they now own 40%). That’s helped her keep the brand’s principles

A seat at the table

Silos tend to form as companies grow. You’ve got your office and field silos. Then, there are operations and sales silos. There are silos of executive leadership, department managers and field supervisors. Field labor has a silo of its own, too. “We have been really fortunate in our 30 years of business that we have