Employee Ownership

//Employee Ownership

Employees become the owners at another St. Louis company

Jim Sramek, founder and CEO of Midwest Equipment Co., has transferred his ownership to the company's 72 employees through an Employee Stock Ownership Plan, or ESOP. Midwest Equipment is a commercial food service equipment distributor in Missouri, Kansas, Illinois and Arkansas. Founded in 1993 and headquartered in Fenton, it operates four primary lines of business:

Companies With ESOPs Report Advantages for Business

The results of this year’s Economic Performance Survey (EPS) show that, once again, companies belonging to The ESOP Association have experienced positive corporate performance. Since the EPS was launched in 2000, the majority of responding companies have reported increases in profits for every year but two—2002 and 2010, which reflect the nationwide economic downturns in

Capital Lighting becomes 100% employee owned

Lighting and mirror manufacturer Capital Lighting is now 100% employee owned. The Flowery Branch, Ga.-based company announced its Employee Stock Ownership Plan (ESOP) effective September 28. Owners Mary Lou and John Lewis made the formal, surprise announcement to employees on Tuesday, Oct. 30 in a companywide breakfast meeting at its corporate office. The ESOP effectively

Companies, Employees Share Benefits of Strong Performance

The results of this year's Economic Performance Survey (EPS) show that, once again, companies belonging to The ESOP Association have experienced positive corporate performance. Just as importantly, the EPS once again shows that when companies perform well, employee owners share in the rewards. This year, new data reveal a new facet of how ESOP (employee

How This Third-Generation Family Business Has Minted 70 Millionaires

If you've driven through Upstate New York or Vermont, there's a decent chance you've stopped at a convenience store with a brick-red-and-white cursive logo whose distinctly '50s vibe brings a little ice cream parlor nostalgia. Inside, there's the standard convenience-store fare, chips and sodas, but there's also usually an ice cream counter. This would be one

Shareholders Are Stealing Our Jobs

It’s not the robots that are coming for American jobs. It’s not the immigrants. It’s not evil offshoring CEOs either. It’s the shareholders. Under shareholder capitalism, the U.S. labor force has become a liability—a cost to be contained—rather than an asset, and the decrease in worker well-being is a simple externality to be placed off

When Sears Flourished, So Did Workers. At Amazon, It’s More Complicated.

Half a century ago, a typical Sears salesman could walk out of the store at retirement with a nest egg worth well over a million in today’s dollars, feathered with company stock. A warehouse worker hired now at Amazon who stays until retirement would leave with a fraction of that. Much as Sears has declined

A custom solution for a family-owned business

The owners of a successful manufacturing business in West Michigan were struggling to develop a plan for the future. For the second-generation sibling owners, the clock was ticking to find a succession plan that fit them, their families and the company. One third-generation family member has been a key person for the company but did

BSA named a Certified ESOP

BSA, a national integrated design firm, has been named a Certified ESOP by Certified EO, a certification program for employee-owned companies. Founded in 1975, BSA has always been owned by employee shareholders, but it opened ownership to all employees earlier this year when it launched its first-ever Employee Stock Ownership Plan (ESOP). "Becoming an ESOP

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