Employee Ownership

//Employee Ownership

Chuck & Don’s shifting to employee-owned business

The owners of Chuck & Don's, the growing Twin Cities pet-supplies chain, are gradually turning over control of the fast-growing pet-supplies retailer to employees. The Star Tribune reports on the process, launched by chain owners Bob Hartzell, and Chuck Anderson four years ago. Both men are in their 70s and were looking for a way to turn the business over

Why businesses should consider employee ownership

As business founders retire and close up shop, they’re inflicting what’s being called a “silver tsunami” on the economy. Communities lose revenue and employees lose jobs, when selling the business to employees might be a better alternative. The Rutgers School of Management and Labor Relations has opened the New Jersey/New York Center for Employee Ownership. Its

2017-11-15T11:55:54+00:00 Tags: , |

Employee ownership a point of pride for Swinerton Builders

When the company that became Swinerton Builders started, Grover Cleveland was president and Henry Ford was still more than a decade away from popularizing the assembly line. It was a much different world in 1888 when the company began as a brick masonry and contracting startup, but Swinerton says lessons learned over more than a

Why One Retail Company Bets On Its Employees

Amazon has grabbed plenty of headlines recently with its splashy acquisitions and phenomenal growth—while also potentially disrupting the retail industry along the way. But not every successful retailer has followed in Amazon’s hard-charging path. Consider a label like Dansko, whose founders Mandy Cabot and Peter Kjellerup decided in 2012 to sell their company to their employees

2017-11-09T04:52:49+00:00 Tags: , , |

Settling the Standard for Prudence? Fall Brings New Guidance for ESOP Trustees

Through a series of recent settlements, the US Department of Labor (DOL) has outlined the process steps fiduciaries should follow in connection with a transaction involving a purchase from, or sale to, an employee stock ownership plan (ESOP). Largely based on the “fiduciary process steps” first introduced by the DOL in the 2014 settlement of Perez

What Changes When Employees Take Over a Company?

After nearly 90 years in the grocery business in Northeast Ohio, the Buehler family announced last month that it is selling its stores.  But the 13 Buehler’s Fresh Foods markets likely won’t seem much different.  That’s because the people who already manage and work in them are the buyers. The deal is an ESOP : an Employee

Four reasons why employee ownership can solve your business succession issues

Business succession is often the elephant in the boardroom, however things change and business owners need to retire. Poor planning can leave a previously successful business very vulnerable. In reality, it’s never too early to start thinking about your succession options. The traditional exit route of selling to a trade buyer isn’t always attractive, especially

Workers take the reins at two more Portland-area businesses

Two Portland-area businesses have joined the growing ranks of companies owned by their employees. Solar energy contractor ReVision Energy has converted to 100 percent employee ownership, as has Pro Search, a 23-year-old staffing agency. An Employee Stock Ownership Plan, or ESOP, is a mechanism that allows employees to become owners of stock in the company

2017-11-05T14:30:55+00:00 Tags: , |

Inland Seafood says employee ownership will boost growth

Major Atlanta, Georgia-based seafood distributor Inland Seafood projects that its newly instituted employee stock ownership plan will boost its growth by providing equitable ownership in the company to a motivated workforce. According to the arrangement, first reported earlier this year by Undercurrent News, the company is now 100% employee-owned, which will ward off interest from acquisitive broadline distributors that

Hubbard’s to become worker-owned as part of Dazey’s Supply

Hubbard’s Hardware will become part of employee-owned Dazey’s Supply Jan. 2 After three decades of running the state’s oldest hardware store, founded in 1884, the Seus family decided it was time to move on. However, the five siblings who have owned the 133-year-old since 1988 weren’t about to turn the reins over to just anyone.

2017-10-31T15:13:24+00:00 Tags: , |

Organic ingredients supplier Ciranda shifts ownership to employees

Organic ingredients supplier Ciranda has shifted 100 percent of its ownership to its employees, the Hudson, Wis.-based company announced last week.  Effective Oct. 1, Ciranda sold 100 percent of its shared into an Employee Stock Ownership Plan, allowing eligible employees to share ownership through annual stock distributions. The company currently employs 44 people. “Our employees inspire us

2017-10-31T14:51:50+00:00 Tags: , |

Fund Evaluation Group Broadens Its Equity Ownership

Fund Evaluation Group (FEG), one of the largest independent, full-service investment consulting firms in the U.S.[1], was sold to its employees by means of an employee stock ownership plan (ESOP) last Friday. All current managing principals will remain fully engaged in the business, and are excited to more broadly distribute the equity ownership among firm

Employee ownership represents a fairer economic development strategy

A few years ago, the New York Times reported that state governments spend over $80 billion per year on business incentives. States, including California, offer tax reductions and other special subsidies to companies that promise to relocate jobs in state or even just promise not to move them out of state. The cost per job is usually

RP Oak Hill executives needed a succession plan. They chose their employees.

Real estate developers have been transforming the landscape of Buffalo for the last decade, renovating old buildings and erecting shiny new ones. But they’re often not the ones doing the heavy lifting. That task falls to construction companies and general contractors, who are hired to perform and oversee the work. And one of the most

The Woman Aiming to Get 50 Million Americans Into the Worker-Owner Economy

For decades Marjorie Kelly has looked for ways that businesses can better contribute to the good of society. In 1987, after getting a master’s degree in journalism, she founded Business Ethics magazine to showcase socially responsible corporations. But after 20 years as president and publisher, she sold the magazine. She had come to an epiphany:

MFM Building Products Becomes an ESOP Company

MFM Building Products is now an ESOP (employee stock ownership plan) company as of July 1, 2017.  “This move to become an ESOP company has spurred an exciting time in MFM’s history,” said Tony Reis, vice president and general manager. “Our employees have found a new dedication to producing the best waterproofing barriers in the

2017-10-26T13:15:59+00:00 Tags: , |

Workers make excellent owners

Duff McDonald's book "The Golden Passport," published earlier this year, is a blistering indictment of Harvard Business School. Too many HBS graduates, the book charges, are concerned only with enriching themselves and the shareholders of the companies they wind up running. Judging from the interest it has generated, a lot of people share this view.Ninety

With ESOPS, ‘When things get tougher, people work harder’

Employee Stock Ownership Plans, or ESOPs, are a way for employers to ensure that their workers have a personal stake in the success of the business. Nationally, 9,000 to 10,000 companies use ESOPs, covering 13.5 million employees, or 10 percent of the private workforce, said Drew Barton, vice president of ESOPs of Idaho, a Boise

Galfab announces employee stock ownership plan

Charlotte, North Carolina-based Mosaic Capital Partners LLC, has announced that it has led the structuring and funding of the employee stock ownership plan (ESOP) buyout of Galfab, a manufacturing company with locations in Indiana and Arizona that was previously owned by Wastebuilt Environmental Solutions LLC, Bolingbrook, Illinois. Mosaic Managing Partner Keith Butcher says, “Our team at Mosaic was

2017-10-23T10:59:50+00:00 Tags: , |

Family-run Buehler’s transitions ownership to employees

Independently owned Buehler's Fresh Foods stores are known in their communities for customer service, garden-fresh produce, and offering a clean and friendly grocery store atmosphere. Members of the Buehler family have run the company for four generations. And now, the family is makng its employees the owners. This move is not likely to go unnoticed by staff, shoppers

2017-10-23T04:32:37+00:00 Tags: , |