DATE RELEASED: 03/16/18

Quick: what do a grocer in Sonoma County, California; a bookstore in Cambridge, Massachusetts; a real estate company in Columbus, Ohio; and a coffee house in Rock City, Maine have in common? Answer: all four companies are converting to worker ownership.

At Nonprofit Quarterly ("NPQ"), of course, we have profiled employee ownership. As we noted, "a business succession crisis that could cause millions to lose their jobs is looming." But by transferring ownership to employees, retiring...

DATE RELEASED: 03/16/18

Two bills on employee stock ownership plans (ESOPs) have passed without dissent in the Small Business Committees in the House and the Senate, and both have bipartisan support.

By unanimous vote, the House Small Business Committee passed the Main Street Employee Ownership Act, sponsored by Nydia Velaquez (D-NY), with a friendly amendment from Steve Chabot (R-OH). Kirsten Gillibrand (D-NY) initially developed the...

DATE RELEASED: 03/15/18

PROVIDENCE, R.I. — Should Rhode Islanders own the companies they work for?

Five panelists at a breakfast gathering organized by Leadership Rhode Island made that argument Friday morning.

The leading arguments:

  • Employee-owned companies are fairer to workers.
  • They are more successful.
  • They are more productive.

In part because employees have a personal stake in the success of the company, employee ownership gives companies an "incredible...

DATE RELEASED: 03/05/18

The success story of custom furniture manufacturer Whitewood Industries has been the transfer of its ownership to its more than 300 employees.

The Thomasville company said Monday it was sold in December to its employees through an employee stock ownership plan program, known as ESOP.

It was founded in 1982 by Jorge Mata and Ron Feibel. They will remain in their management positions.

Whitewood Industries makes customized...

DATE RELEASED: 02/28/18

HIGHLIGHTS:

    • The U.S. Department of Labor (DOL) closed out 2017 by entering into yet another settlement agreement with the trustee of an employee stock ownership plan (ESOP).
    • The latest agreement (the Alpha Agreement) requires Alpha Investment Consulting Group LLC to follow certain policies and procedures when it serves as a trustee or other fiduciary of an ESOP.

    • This Holland & Knight alert outlines similarities and differences among the Alpha...
DATE RELEASED: 02/28/18

ESOP-owned Hannibal Industries, Inc. named Reed Reynolds as its chief operations officer (COO). Reynolds is a steel industry veteran that has more than 14 years of experience in sales and management positions. Reynolds' first day in this role will be March 12 and he will report directly to the president. Reynolds will be responsible to oversee the daily operation of the company while maintaining and establishing policies that promote the company...

DATE RELEASED: 02/23/18

Summit, NJ: The principals of Pilot Hill Advisors through its broker/dealer, Corporate Finance Securities, are pleased to announce that GeoStruct Engineers, Inc. has recently become 100% owned by its Emplyee Stock Ownership Plan.

GeoStruct Engineers, which does business as the RMG Group, provides design and engineering services in the residential, commercial building, and development areas. The company offers structural investigations,...

DATE RELEASED: 02/19/18

USA Mortgage's sole owner, president and CEO, Douglas Schukar, transferred ownership of the company to employees through an Employee Stock Ownership Plan (ESOP).

Schukar said he'd been mulling the idea of an ESOP since 2015, when a pair of employees abruptly resigned citing a lack of a succession plan at the company.

"I was stunned," he said. "They had asked a fair question and I didn't have a good answer for them so they left. So I...

DATE RELEASED: 02/16/18

Illini Hi-Reach has become an employee-owned company ("ESOP"), according to president and CEO Larry Workman. All of the Illini management team remains in place. The company is planning to add more experienced employees as the company continues its strategic growth and expansion.

"We are very pleased to announce that Illini has completed a successful transition into an ESOP this past month," Workman said. "This is a well-deserved and excellent...

DATE RELEASED: 02/14/18

APPLETON - Appvion's public announcement last week of its proposed sale left out a significant detail.

The paper company has an Employee Stock Ownership Plan (ESOP), which means the company is owned by its employees. If the proposed $325 million bid by an unnamed lender is successful, the ESOP will have no value and employees will lose the shares they expected to collect at retirement, according to a letter sent internally to employees by company CEO Kevin Gilligan.

The internal...

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