Employee Ownership

//Employee Ownership

Chattanooga’s Adman Electric grows as employee-owned firm

Todd Moreland says he wanted to be an electrician since he was 16 years old at Ooltewah High School, following in the footsteps of both his father and grandfather. Starting 40 years ago as a teenager at Adman Electric, Moreland started making coffee, getting doughnuts, working in a warehouse and driving a truck before getting

Coeur d’Alene construction company converts to employee ownership

Rick Carlson and his wife, Shelley, started Inland Waterproofing Services Inc. at their kitchen table and grew the specialty construction company into a business with large commercial accounts. When Boeing built its 40-58 777X composite wing factory in Everett, the Coeur d’Alene company waterproofed 2 miles of tunnels underneath the facility. The company also waterproofed foundations for

Company credits growth to ESOP structure

Established in 1960 by Gordon “Buck” Horbuck and his wife, Ira, B&I Contracting began the transition into an employee-owned company in 1986. It completed it in 1991. The move to what's commonly referred to as an ESOP, at least based on share price, has been nothing short of remarkable: privately-held shares of the company are now worth

Members of Congress Ask Trump to Protect ESOPs

Just as the ERISA Industry Committee (ERIC) did regarding the issue of missing participants in retirement plans, a group of legislators is calling out the Department of Labor (DOL) for engaging in enforcement activities against employee stock ownership plans (ESOPs) without providing meaningful guidance. Twenty-seven members of Congress sent a letter to President Donald Trump saying the

MISys, Inc. Becomes 100% Employee Owned Through ESOP

Manufacturing Information Systems, Inc. (MISys), a leading manufacturing software solutions company based in Woodstock, VT has announced that the firm is now sharing beneficial ownership with employees by becoming 100% owned by an Employee Stock Ownership Plan (ESOP) Trust. As an employee-owned company, MISys, Inc. will continue to operate under the same business model. "The ESOP was a natural

Sharing the spoils with employee share ownership

The proposal by John McDonnell, Labour’s shadow chancellor, to force companies of a certain size to hand over shares to their employees is controversial. But while his mechanism for increasing workers’ ownership has its critics, McDonnell’s motivations are widely shared. The arguments for employee share-ownership – improved engagement and motivation, for example – are solid.

One Retirement Investing Mistake Investors Should Avoid

The Biggest Retirement Mistake Aliens. Men in black. Roswell, New Mexico. This might sound like the ranting of a sandwich board-wearing conspiracy nut on the street corner. But for some investors, such topics represent very real risks to their investment portfolio. During the 1990s tech bubble, a promising business called USWeb promised to take over the Internet.

A Boost for the Worker-Owned Economy

Business owners looking to sell their companies to their employees just got a helping hand from the federal government. It’s the first such measure that’s passed Congress in more than 20 years. Tucked into the omnibus National Defense Authorization Act signed by President Trump in August 2018 was language directing the U.S. Small Business Administration

Employee Ownership & ESOPs: Why Small Business Owners Need To Pay Attention

In 2011, the baby boomer generation began turning 65. With the majority of businesses in the nation owned by persons over the age of 45, the number of business owners looking to retire in the next 15 years could place over $10 trillion in assets for sale. In California alone, over 12 million businesses will

What if employees co-owned the business where they work?

What do Bernie Sanders and Paul Ryan have in common? Mr Ryan recently learned he has some Jewish ancestry, but there is at least one other thing, tucked between their otherwise diametrically opposed visions for the US economy: both advocate enabling more Americans to co-own the businesses where they work. Mr Ryan has been a

North KC-based construction company becomes 100 percent employee owned

The last two private owners for Mega Industries Corp. agreed to sell their shares and make the company 100 percent employee owned. Founded in 1992 in North Kansas City, Mega Industries created an employee stock-ownership plan in 2006. However, CEO Brian Gordon and COO Craig Bridgeman still owned shares privately, outside the ESOP. They have sold those shares back

A Giant Company Wanted to Buy His Business for $120 Million. He Walked Away From It

On April 17, 2000, Gary Erickson told his wife, Kit Crawford, he needed to go for a walk. He'd spent the past three months in a haze--he was starting to realize that much. This day had seemed inevitable, and he'd let himself float toward it, not fighting, nor even resisting. In an hour, he was scheduled to meet with

Transferring Ownership Of A Midsized Firm: How HdL Made Its ESOP Work

Some 70% of owners of small and midsized U.S. businesses will retire in the next 20 years, selling or passing on $10 trillion in assets (California Association of Business Brokers). Yet 58% of 200 such firms surveyed last year by Wilmington Trust don’t have an ownership transition plan for the business. That’s a recipe for trouble for

Flipkart Employees To Become Millionaires As Walmart To Buy ESOPs

Flipkart employees are expected to strike gold through the deal of acquisition of the e-commerce giant by Walmart. Flipkart has recently allowed its employees – if they want – to sell their stocks to its parent company. The employee stock options present at their disposal had their valuation increased as a result of the deal. The increase

Two linked KC companies go ESOP and announce rebranding

Two linked Kansas City companies have become employee-owned — under a new brand name. M.E. Group Inc. and Forte Building Science are now BranchPattern Inc. and have established an employee stock-ownership plan (ESOP), according to a release from BranchPattern. The company specializes in building construction consulting and is based in Overland Park. “People are at the

A Little Helping Hand: U.S. Congress And ESOP Support

Since 1974, very little legislation has been passed by the United States Congress regarding employee ownership initiatives. In the last two years, two new bills have made their way through the legislative chambers with the aim of encouraging employee ownership in U.S. companies: the 2017 and 2019 National Defense Authorization. Both bills extend Small Business

Sun Light & Power transitions to 100% employee-owned

After more than 40 years in business, California’s Sun Light & Power announced the implementation of an Employee Stock Ownership Plan (ESOP) giving 100% ownership to the company’s 80+ employees. The transition supports the company’s belief in its greatest differentiating assets: its people. “For 42 years, I have proudly owned the company. Now, it’s time

Breaking Through the False Choice Between Mission and Liquidity

Many a social enterprise leader has asked themselves: If I take on equity investors, will I have to fight to preserve my company’s mission? If I have to sell my company to a larger enterprise to provide an exit for investors, will I be selling out that mission? Do I have to stay small to

Capitalism for the common good

In the past few years, Mark Barnes and wife, Perri, were excited to prepare for their retirement from the lawn care and snow removal business, Barnes Inc., that they founded in 1981. But there was one thing that worried them: What would happen to their 145 employees — 175 during winter months — after they

Legend Seeds Now Employee Owned

As of Aug. 1, Legend seeds is an employee owned independent seed company. It was founded in 1990 by Glen and Janet Davis and had been family owned until this recent switch. Legend Seeds employs more than 100 people in the upper Midwest. The new Employee Stock Ownership Plan gives all employees ownership in the