ESOP

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Harken Inc. founders decide to sell to employees

Peter Harken, the co-founder of internationally-renowned sailboat hardware and accessories manufacturer Harken Inc. in Pewaukee, says he and his late brother Olaf Harken rejected overtures from at least 50 potential acquirers over the years but now it’s time to “pass the baton.” Harken, 83, who is the company’s chairman, announced to employees Wednesday in the company’s parking

Don’t Wait to Begin Business Succession Planning

A common and costly mistake when it comes to business succession planning is not starting the process early enough. By waiting too long, an owner runs the risk of not having the right people in place to run the business, as well as having much of the business’ value consumed by estate taxes. Either misstep

L’Oréal Introduces Second Employee Share Ownership Plan

L’Oréal said it is launching a second employee share ownership plan, which will be introduced in 57 countries. Under the plan, group employees will be able to buy 500,000 shares at a discounted rate. The subscription period will run from Sept. 17 to Oct. 2, and settlement is scheduled for Nov. 3. The shares will

Greenfield Company Goes Employee-Owned

A Greenfield-based specialty underground contractor has switched its ownership status. Midwest Mole Inc. says it has transitioned to an Employee Stock Ownership Plan following the retirement of second-generation owner and Chief Executive Officer Dan Liotti. The company, which provides boring, trenchless tunneling, and directional drilling services throughout the Midwest, has been family owned since its

The benefits of transitioning your business to an ESOP

When an owner of a privately held business is planning to retire, there are many ownership transition options to choose from. You can go the route of a management buyout, transfer to the next generation, a sale to a third-party buyer, an IPO, or even liquidation. Each of these options has pros and cons which

Alltek founder sells company to employees

Alltek Energy Systems president and co-founder Mike O'Connor has sold his 40-year-old plumbing, heating and mechanical contracting firm to his 60 employees. O'Connor, 67, formed an employee stock ownership plan this month turning over 100% of the assets of a Waterford company that has worked on hundreds of hotels, supermarkets, restaurants, apartments, medical centers and college campuses

Erie Company Becomes 100 Percent Employee-Owned

An Erie-based company has completed its transition to a 100 percent employee-owned business. Officials from Onex, an industrial furnace company, announced the creation of a new Employee Stock Ownership Plan (ESOP) at a company event on August 21. Company officials say the transition secures the Onex's future in Erie. "Being 100 percent employee-owned rewards our

Applewood Seed Company Announces Employee Stock Ownership Plan

Gene Milstein, founder, and his wife, Dee Milstein, co-owner of Applewood Seed Company, announce the formation of an Employee Stock Ownership Plan (ESOP), transferring significant ownership of the company to current and future employees. As part of a comprehensive succession plan, the Milsteins formed the ESOP to implement their goal of keeping Applewood Seed as

Employee ownership, the wealth gap, and the current crisis

Sen. Ron Johnson (R-Wis.), one of the most conservative members of Congress, and Rep. Alexandria Ocasio-Cortez (D-N.Y.), one of the most liberal, have both introduced sweeping proposals to broaden employee ownership in the U.S. That surprising fact testifies to just how practical—and urgent—this idea is. Too many Americans have too little wealth. Just over 20 percent of all Americans

With an ESOP, many winners in sale of a business

Former owner Jim Dow, who retired as CEO at 81, said he did the right thing in selling Diversified Plastics to its 80 employees. For many business owners, a succession plan is about more than creating an exit strategy or profiting from the sale of the company. It’s about preserving a legacy in a way

Avion Solutions Announces Transition to 100% ESOP

Avion Solutions, Inc. is proud to announce it is now a 100% employee-owned company. This announcement of the sale to the Employee Stock Ownership Plan (ESOP) was made on July 31, 2020 to employee owners. "Since we became an ESOP company in 2007 our goal has always been to be a 100% employee-owned ESOP," said Chad Donald, President

Communication is Key – Especially Now

As I write this blog, I’m getting my oil changed.  I realize that this is not an earth-shattering event and that it happens all the time.  But I realized I had not had to change it since late last year.  I literally cannot think of another time since I started driving at age 16 that

Millionaires’ numbers keep rising at Stewart’s Shops

Stewart's Shops said Tuesday it distributed an additional Employee Stock Ownership Plan dividend to its participating employees. The amount represents 4.5 percent of employees' ESOP balance at the end of 2019. The company said the employees, which it calls Partners, can either take the dividend as a cash payout or roll it over into their

Employee Stock Ownership Plans and Their Effect on Productivity: The Case of Huawei

Employee Stock Ownership Plans (ESOPs) are utilized by many successful companies across the world. This case study describes Huawei, a Chinese telecommunications equipment company, which heavily utilizes ESOP ownership, and applies Huawei’s results to describe ESOPs as a powerful tool for achieving corporate efficiency and growth. Using and analysis of Huawei’s annual reports, we argue

Saratoga County-based company now boasts 88 millionaires on paper

Stewart’s Shops, the chain of convenience stores found across the Capital Region and beyond, has seen gas and coffee sales drop during the COVID-19 pandemic in keeping with the decreased commuter traffic. But the shops are selling more dairy and grocery items, spokeswoman Erica Komoroske said. That includes milk, butter, eggs and packaged ice cream.

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