ESOP

/Tag: ESOP

Bandit Industries completes ESOP sale to employees

Bandit Industries, Remus, Michigan, announced that it finalized its transition to a 100 percent employee stock ownership plan (ESOP) company on Nov. 1. Former owners Mike Morey Sr., Dianne Morey and Jerry Morey announced their intention to sell the company in an ESOP over the summer of 2018—a move that was celebrated by Bandit’s employees

Workers in ESOPs Have Double the Retirement Savings

S Corporations are likely to be fully employee stock ownership plan (ESOP) owned, and S Corporation ESOPs, in particular, tend to prepare workers much better for retirement than other types of workplace retirement savings plans, according to the National Center for Employee Ownership (NCEO). ESOP participants have an average retirement balance of $170,326, more than

Employees Run The Show At One Mesquite Casino

When we think of people who own casinos, we think of the larger-than-life figures – your Benny Binions, Howard Hughes or Kirk Kerkorians of the world.  And there are stockholder-owned casinos: Wynn, Sands and MGM for instance. One casino in Nevada is doing things differently. The Eureka Casino Resort in Mesquite -- 214 rooms -- is one of only two casinos in the country owned

Income inequality, financial crisis and the rise of Europe’s far right

Destinations by Design (DBD), a provider of high-quality destination management and event services to the incentive and corporate markets in Las Vegas for 28 years, has announced that effective November 5, 2018, the company’s stock has been sold to its employees through an Employee Stock Ownership Plan (ESOP). Representing a tangible way to reward those who have

Oklahoma trailer manufacturer acquired by Gazette parent Folience

Folience, the parent company of The Gazette, has acquired an Oklahoma-based manufacturer of equine and livestock aluminum trailers. Cimarron Trailers employs 135 workers at a 90,000-square-foot facility in Chickasha, Okla. With a dealer network across North America, the company reports it has more than 12,000 of its trailers on the road. The acquisition was finalized Monday,

At $49 billion company Essilor, employees are the largest shareholders

At The Essilor Group, an ophthalmics company based in France, employees are the largest group of company shareholders. To date, 55% of Essilor's 67,000 global employees are shareholders, and they own upwards of 8% of the company's share capital. All employees, regardless of seniority, are eligible to use their wages to purchase shares. Essilor, a $49 billion

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

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

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

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

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

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

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

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

What a ‘silver tsunami’ of retiring Baby Boomer business owners could mean for their workers

As Labor Day arrives -- and economic inequality rises on the political agenda -- a little noticed measure in the recently signed defense spending bill aims to address the widening wealth divide between workers and the owners or top executives who manage them. The measure, co-sponsored by Sen. Kirsten Gillibrand (D-N.Y.), is intended to expand financing options