ESOP

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Using employee stock ownership plans to empower workers and boost growth

An employee stock ownership plan, or ESOP, could be the key to unlocking a stronger workplace culture and improving your bottom line. Employee ownership may sound like a novel idea, but it’s a concept that’s been around for decades. The legal groundwork for today’s ESOPs was first laid within the 1974 Employee Retirement Income Security

When Should an Employer Consider an ESOP?

Employee Stock Ownership Plans (ESOPs) are popular both with owners looking for ways to increase employee engagement and involvement and with employees seeking to have some ownership in and benefit from the work they do beyond their salaries. For business owners, considering implementing an ESOP is one of many options they consider when looking at

Georgia Theatre Company Transitions to 100% Employee Ownership

It’s the ultimate bonus: Georgia Theatre Company (GTC), the 18th-largest theater circuit in North America, has rewarded the diligence and dedication of its roughly 700 employees by making them the owners of the company. This apparently unprecedented action by a movie-exhibition chain is made possible by the creation of an employee stock ownership plan (ESOP),

When staff run the show: the true benefits of employee ownership

The moment when staff at John Lewis and Waitrose are told the size of their bonus is always much-anticipated. This week’s announcement will be no different, except in one respect – staff will probably be handed a fraction of the usual 10% to 18% of salary. Last year it was 3%, this year it could

Midland Trust Announces the Formation of an Employee Stock Ownership Plan

Midland Financial Corp., a Florida holding company for Midland IRA Inc. and Midland Trust Company, has become an employee-owned company effective January 29, 2020. Midland sold 25% of its ownership interest to a newly created Employee Stock Ownership Trust, allowing current and future employees to gain a beneficial ownership interest in the company. This was made

Retiring Boomer Business Owners Turn to Worker Co-ops to Preserve Legacy

Worker co-ops are “an idea with growing appeal for small-business owners,” observes Karen Angle in Bloomberg Businessweek. Angle adds that according to data from the US Federation of Worker Cooperatives, the US now has about 800 worker-owned co-ops—still a small number, but more than double the 350 that existed a decade ago. These worker co-ops now employ

Cornerstone Systems announces 100 percent employee owned

Memphis-based third-party logistics provider, Cornerstone Systems, Inc. announced that it is now a 100 percent employee owned company as Founder/Chairman Rick Rodell sold his last 51 percent. In 2013, Cornerstone officially became an ESOP when Rodell sold 49 percent of his shares to the newly created ESOP. “When you’re 49% ESOP, you’re in deep,” President/CEO

metroConnections Becomes 100% Employee Owned

metroConnections leadership is proud to share that the company has formed an Employee Stock Ownership Plan (ESOP) as of January 1, 2020, and in doing so, has made every metroConnections employee a critical business stakeholder. The ownership transition is a further commitment to metro’s customers, as the employee ownership further cements its reputation of being

Another large Columbus company is now owned by its employees

GreenScapes Landscape Company Inc. is the latest in a line of Columbus companies to transition to employee ownership. The landscaping company has transitioned to an employee stock ownership plan, or ESOP, placing control in the hands of its 90 employees, a succession plan initiated by founder Bill Gerhardt. Since opening in 1977, the company has

Kovatch Castings embraces ESOP to preserve company culture, family legacy

When Doug Kovatch began to ponder retirement a few years back, he found himself in a position not uncommon among many of today's leaders of family businesses. Kovatch, now 62, had been president at Kovatch Castings Inc., a Uniontown manufacturer started by his father in 1976, for more than 40 years. The second-generation owner was ready

Loftness in Hector becomes employee-owned

Loftness Specialized Equipment Inc. based in Hector, MN has joined an employee stock ownership plan. Through this change, the manufacturer of agricultural and vegetation management equipment is now 100 percent employee-owned. “Our employees, as well as the entire community of Hector, mean very much to us so we’re excited to present them with this new

France is making start-up friendly reforms to lure tech talent and take on Silicon Valley

French President Emmanuel Macron will announce plans to reform the country’s rules on employee stock options. Such compensation schemes give employees the chance to acquire a slice of the company they work for. It comes after 500 European start-up founders warned of a “brain drain” of the best and brightest in Europe. France is bringing in new rules

Loftness Becomes 100-Percent Employee Owned

As of January 1, 2020, Loftness Specialized Equipment, Inc. has joined an employee stock ownership plan (ESOP). Through this change, the Minnesota-based manufacturer of agricultural and vegetation management equipment is now 100-percent employee owned. “We’re proud to become 100-percent employee owned,” said Gloria Nelson, president and CFO of Loftness. “Our employees, as well as the

Palmer Holland Converts to Employee Stock Ownership Plan

Palmer Holland converted to a privately held Employee Stock Ownership Plan (ESOP) with an ownership team made entirely of employees. While Palmer Holland was a private company prior to the transition, this move solidified the organization's goal to remain an independent specialty chemical and ingredient distributor for the long term. While others in the sector have

PAQ Inc. Turns to ESOP for Food 4 Less Stores

PAQ Inc., an independent franchisee of Food 4 Less operating 20 stores in central and northern California, has created an employee-owned stock ownership plan (ESOP) in light of the retirement of owners Patricia and John Quinn. Business partner Glenn Evans will remain with the company as chairman of the board. The three partners founded the business in

Valuation Helps Set Plan for Succession Transitions

Cash flow is the lifeblood of any business, but for owners who want to pass their companies onto the next generation of leadership, it holds even more importance. When it comes to making the transition of a business from one generation to another – or selling it to another company – the valuation is one

Company in Allentown now 100% employee-owned

It's called the endowment effect. Simply put, you care more about the things you own. And now, some employees in Allentown are having that same feeling. After 36 years in business in Allentown, employees at Andesa Services received quite the gift to start the new year. All 165 employees now own 100% of the company. "They will have

Pride & Service Elevator Becomes 100% Employee Owned

Pride & Service Elevator, Inc. has completed a transaction to become 100% employee-owned through its newly created Employee Stock Ownership Plan (ESOP). The Company was founded in 1983 in New York, NY, and has been designing, maintaining, modernizing and repairing elevators for 36 years throughout New York and New Jersey. The Company has been owned and managed by The Todd