Employee Ownership

//Employee Ownership

Employee-owned firm enjoys growth – Rocky Mount Telegram

Since becoming an employee-owned company in November 2014, Freedom Industries Inc. in Rocky Mount has grown as a business. The local full-service contracting company in electrical, mechanical and fabrication was recently rewarded as the 2017 employee-owned company of the year for the Carolinas Chapter, which covers both North Carolina and South Carolina. Derrick Vick, vice

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Federal judge rules Wilmington Trust owes nearly $30 million | West Virginia Record

A federal judge has ruled that Wilmington Trust owes Employee Stock Ownership Plan participants nearly $30 million as a result of a stock-purchase that violated the Employee Retirement Income Security Act of 1974.  The defendant agreed to pay $29,773,250, according to the memorandum filed March 13 in the U.S. District Court for the Eastern District

Bacon maker Godshall’s to become employee owned

Godshall's Quality Meats Inc. has announced plans to convert to an employee-owned company. The owners -- Mark Godshall, Floyd Kratz and Ron Godshall -- said they took this extraordinary step to ensure that the company remains independent and maintains its unique culture. "It seemed like the next step in our philosophy of treating our employees

ESOPs: A Powerful Tool for Closely Held Banks – Lexology

An Employee Stock Ownership Plan (ESOP) is a powerful and effective tool that can be used for addressing many different issues facing closely held banks. For shareholders in a closely held bank, an ESOP can be used as a succession planning or liquidity vehicle. For the bank's employees, it can provide enhanced benefits useful in

How ‘Fluffy’ the secretary became an owner of a $54 million Philly company

Sometimes a succession plan involves champagne and bruschetta at Del Frisco’s swanky steak house in Center City. And sometimes it involves throwing a chair against the wall. William A. Graham 4th, 76, chairman of the Graham Co., has had it both ways in a three-generation, father-and-son saga that’s about love and rivalry and the need for each

Tax advantages of ESOPs as an exit opportunity for architecture and engineering firms

Stakeholders in mature architecture and engineering firms nearing retirement are bombarded with ideas from many advisors for the “best” exit option. Despite the owners’ desire to continue to run their firms as they always have and simply focus on their clients, they need to contemplate several key considerations of a solid and successful exit plan,

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Why insurance firm owner Bill Graham turned down $230 million

Back in 1962, William A. Graham IV followed his dad into the family insurance firm. He has since built William A. Graham Co. into one of the 50 largest U.S. commercial agencies. The firm's high-rise looms over City Hall; its agents write policies for builders, factories, hospitals, colleges, and public agencies beyond its hometown.  Graham,

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Brokerage changes ownership structure | Business Insurance

Philadelphia-based brokerage The Graham Company said last week that it has become a 100% employee-owned company through an Employee Stock Ownership Plan Trust. The previously family-owned brokerage, which ranks as the 64th largest brokerage of U.S. business in Business Insurance’s most recent ranking, said in a statement that it will continue to operate under the

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Dishwasher now a partner in restaurant Noma

Ali Sonoko, a dishwasher at world-renowned Michelin-starred restaurant Noma in Copenhagen, was made a partner of the lauded restaurant. Sonoko, an immigrant from Gambia, has toiled in the restaurant's kitchen since it opened in 2003. Noma has ranked No. 1 on the annual much-watched World's 50 Best Restaurants list, organized by Britain's Restaurant Magazine, on

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Diversified Insurance Solutions sells company to employees

Brookfield-based insurance brokerage Diversified Insurance Solutions has been sold to its employees through an Employee Stock Ownership Plan. Jim McCormack, who co-founded the company with Skip Hansen 35 years ago, was the majority owner with 85 percent of the shares. David Stark, who owned about 10 percent, and Tom Jocz, who owned about 5 percent,

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Does Performance-Based Pay Really Work?

Small business owners who don’t want to give employees permanent pay increases may be using performance-based pay — such as bonuses or profit-sharing arrangements — to reward employees without putting too much stress on their business finances. But it turns out this type of pay arrangement may have unintended negative consequences for employees and the

Unilever Set to Change Compensation Structure to Instill Owner’s Mindset

Unilever  has proposed to change the way executives and directors are paid in a bid to make them act more like owners of the business. The changes will put a greater emphasis on long-term employee stock ownership, Unilever said in its 2016 annual report released late Tuesday, and will be voted on at the company's

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Employee Owned Companies Pass the “Recession Test”

Employee stock ownership of companies has been promoted in the US since the country’s founding. After the Revolutionary War, Treasury Secretary Alexander Hamilton fostered the resurgence of the Codfish industry by providing financial subsidies, but only for ships that had written profit-sharing agreements with their crews. This program, enacted in Y 1792, lasted until after

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Tewksbury Tri Wire transfers common stock to employees

Tri Wire Engineering Solutions, a broadband service installation company for the telecom industry headquartered in Tewksbury, announced that in January, 100 percent of the company's common stock was transferred to the employees through an Employee Stock Ownership Program, making Tri Wire one of the largest broadband service companies completely owned by its employees.   With

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Mares: ESOPs

Switchback Brewing, with a thirty thousand barrel production capacity and 30 employees now joins half a dozen other breweries around the country that have established ESOPs - or Employee Stock Ownership Plans. More than six thousand other U.S. firms are now ESOPs, with a total employment of more than fourteen million workers. There are perhaps

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Alexander Hamilton Loved Employee Ownership. So Should We.

Employee equity ownership of companies has been promoted in the U.S. since the country’s founding. After the Revolutionary War, Treasury Secretary Alexander Hamilton fostered the resurgence of the codfish industry by providing financial subsidies -- but only for ships that had written profit-sharing agreements with their crews. This program, enacted in 1792, lasted until after

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US brewery sells itself back to employees

A mid-sized Vermont brewery has become the latest employee-owned craft beer company in the US. On February 8 the Switchback Brewing Company in Burlington, VT officially became the first 100 per cent employee-owned brewery in the state via an Employee Stock Ownership Plan (ESOP). At the company’s annual meeting, owner and brewmaster Bill Cherry announced

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EuroPharma Celebrates 10 Year Anniversary with Employee Ownership

EuroPharma is marking its 10 year anniversary and in celebration founder and president Terry Lemerond has gifted his employees by signing papers to share ownership of his company with every single one of them. He gives this gift in the hopes that this is a just reward for the dedication and hard work the employees

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