In these recent announcements from the ESOP world, the importance of employee-ownership is highlighted as companies reach milestones or prepare for transitions:
On September 10, Stow-Glen Retirement Village of Stow, Ohio announced the celebration of their 2nd Anniversary of 100% Employee Ownership. The retirement village, home to more than 300 residents, became 46 % employee owned in 2000 and the employees purchased the remainder in 2010. The employee-owners spent week celebrating the milestone with a OWNER-BINGO game developed by the OEOC and an ESOP dinner.
Oswald Companies of Cleveland, Ohio has announced that current chairman and chief executive officer, Marc S. Byrnes will be succeeded as chief executive officer by Robert J. Klonk effective January 1, 2013. The employee-owned company was founded in 1893 and is currently among the top 55 largest insurance brokers in the US. The retiring chairman reports that the new leadership is “committed to employee-ownership and remaining privately held. That alone distinguishes us from our competition and gives Oswald the client-focused outlook to keep building on a 25-year period of exceptional growth as one of the premier brokerage and consulting firms in the country.”
The St. Louis, MI electrical products distributor, Graybar, also announced a change in leadership. Robert Reynolds Jr., executive chairman of 40 years will be retiring and Kathleen Mazzarella, current president and CEO will succeed him as chairman of the board. Graybar is a Fortune 500 company and is one of the largest employee-owned companies in North America. The article quotes the retiring chairman saying, “Graybar is a remarkable employee-owned organization, and I am grateful for the opportunity I have had to lead the company.”
A new ESOP was recently created at GLMV Arcitecture as stockholders sold their shares to the GLMV Employee Stock Ownership Plan. This transition created 120 new employee-owners at the Wichita, KA based company. GLMV Chairman, Bill Livingston, believs that the ESOP will give the company a long-term edge over the competition.
For all of these businesses, Employee Ownership is an integral part of their business plan. Recent studies by the Employee Ownership Foundation as reported by The Business Journal shows that companies with an ESOP saw a financial upturn last year and experienced improved productivity. The artical quotes Michael Keeling, president of the foundation, “Employees with employee stock ownership, including those with ESOPs, in general, have more sustainable employment.”