Category Archives: ESOP

2014 Network Webinar Schedule #ESOP #EmployeeOwnership

Join your fellow employee owners and a roster of ESOP experts at our new series of webinars. The webinars cover a range of issues, relevant for those considering setting up an ESOP, new ESOP companies, and and mature ESOPs.

Click the title for more information and to register.

Registration is FREE for member companies of Ohio’s Employee-Owned Network; $60 for each participant from non-member companies.

Registrants will be invoiced by the OEOC. 

New Issue of Rural Cooperatives Magazine Features OEOC

Rural CooperativeRural Cooperatives is a bimonthly newsletter published by USDA Rural Development. The latest issue was recently released and contains articles about advanced biofuel projects, overseas co-ops, a Co-op in Montana that recently reached its first $1 million sales year, and an article on the Urban farming co-op that is bringing local food and new jobs to Cleveland.

Green City Growers opened in Cleveland in February of 2013 with 3.25 acres of growing area which produces hydroponically grown leafy vegetables. The Ohio Employee Ownership Center at Kent State University worked with the cooperative to create a suitable financial plan as plans for the business developed.

Check out this issue of Rural Cooperatives, to learn more about The Ohio Employee Ownership Center and our work in assisting employees and business owners who are interested in employee ownership through both ESOPs and Co-ops.

 

The Paquin Company and Chardon Labs 100% ESOP in 2013

As we’re compiling information for our 2014 memberships, we’d like to recognize some of our Network Members who have become 100% Employee Owned in 2013.

The Paquin Company was founded in 1949, and operates as a full service distributor for hydraulic, pneumatic, linear motion, components and systems. In 2013, the company became 100% employee owned under an ESOP.

Chardon Labs opened in 1965 to provide technical service and support in HVAC water management. Since becoming an ESOP company in 1996, Chardon labs has become 100% owned by its employees.

Other 100% Employee Owned Companies in our Network include:

  • ACRT, Inc.
  • Aero-Mark, Inc.
  • American Roll Form
  • Bardons & Oliver, Inc.
  • Bostwick-Braun Co.
  • Brainard Rivet Company
  • Buckeye Corrugated, Inc.
  • Carbo Forge, Inc.
  • Columbia Chemical Corporation
  • Contract Sweepers and Equipment
  • DimcoGray Company
  • EBO Group
  • Evergreen Cooperative Laundry
  • Fastener Industries
  • GBS Corporation
  • Grand River Rubber & Plastics
  • Green City Growers
  • The Great Lakes Construction Company
  • Gutknecht Construction Company
  • J.H. Bennett & Co., Inc.
  • Janotta & Herner, Inc.
  • Jet Rubber
  • Joseph Industries
  • Kraft Fluid Systems, Inc.
  • Mantaline Corporation
  • Maryland Brush Company
  • The Mosser Group
  • O E Meyer Company
  • Ohio Valley Supply
  • Ohio Cooperative Solar
  • P.T. Services Rehabilitation
  • Palmer-Donavin Manufacturing Company
  • Perry ProTech
  • PLAN-E-TECH Industries, Inc.
  • Prentke Romich Company
  • Producers Service Corporation
  • R.E. Kramig & Co., Inc.
  • Rable Machine, Inc.
  • S.G. Morris
  • Saturday Knight Ltd.
  • Select Machine
  • Smith & Schaefer
  • Software Solutions
  • Star Leasing Company
  • Stow-Glen Retirement Village
  • Thompson-Shore, Inc.
  • Voto Manufacturers Sales
  • The Will-Burt Company
  • Xtek, Inc.

For more information about Ohio’s Employee Owned Network and the benefits of being a member, visit the Network page or contact the OEOC, 330-672-3028 or Network Coordinator Chris Cooper.

3 Ohio Companies make NCEO’s list of Largest Majority Employee-Owned Companies

Each year, the NCEO releases The Employee Ownership 100: America’s Largest Majority Employee-Owned Companies.

To qualify for the list, companies must be at least 50% employee owned through an ESOP or other qualified plan and at least 50% of full-time employees must be eligible to participate in the plan.

For 2013, three Ohio companies made the list:

Davey Tree Expert of Kent, OH with 7,400 employees

Davey Tree has been recognized many times as a leading employee-owned company. Earlier this year, Davey Tree expanded it’s company by acquiring a tree company in Minnesota, marking Davey’s 15th acquisition in the last five years. Davey established an ESOP in 1979 and is now the fourth-largest 100% employee-owned company in the United States/

Riesbeck Food Markets of St. Clairsville, OH with 1,300 employees

Riesbeck began as a small family-owned grocery in Woodsfield, Ohio in 1926. Since then the company has grown to include 16 stores and 6 pharmacies throughout Ohio and West Virginia. The company established an ESOP in 1986, and is currently 57% employee owned and the Riesbeck family is still actively involved in the company.

Zandex Health Care of Zanesville, OH with 1,200 employees

Zandex, a provider of independent living, assisted living, rehabilitation and senior care established their ESOP in 1988. Based in Zanesville, the company now has facilities in New Concord, St. Clairsville, and Shadyside and offers an in-home emergency response team in Muskingum County. The ESOP which now owns 51% of the company.

Mark your calendars for the Southwest Ohio Employee Ownership Forum

The Southwest Ohio Employee Ownership Forum provides attendees with the opportunity to learn more about the fundamental requirements for ESOPs, Employee Ownership Culture, standard appraisal methods and the challenges faced by mature ESOPs.

The sessions will include information helpful to all those in employee-owned companies as well as those considering and ESOP.

Wednesday, September 25, 2013
Crowne Plaza Cincinnati Blue Ash

Sessions will include:

  • Basic Guidelines, Provisions, and Plan Features for ESOPs
  • Impacting Your Share Value–Appraisal Basics and Special Issues for ESOPs
  • Sharing Financial Information with Your Employee Owners…how open should your “open book” be to drive top performance
  • Some Mature ESOP Issues: Sub S Strategies, Repurchase Liability Concerns, Acquisition Considerations

Watch this space for more information on this and other upcoming Network events!

How Does the Affordable Care Act Impact Employee-Owned Companies?

Ohio’s Employee-Owned Network is co-sponsoring a new event to help administrators at employee-owned companies to understand the ever-changing legal requirements, and other compliance issues in providing health care benefits for employees.

Health Care Forum: Code, Coverage, Compliance

An Interactive Event for Employee-Owned Companies

The event will include two sessions:

  • Monday, September 9, 2013 in Cleveland, OH
  • Tuesday, September 24, 2013 in Cincinnati, OH

Both sessions run from 1:00-4:30 pm (registration begins at 12:45)

For more information, including an agenda and registration form, click here.

2013 Ohio Employee Ownership Conference Highlights

We’d like to thank everyone who came out to our 2013 Ohio Employee Ownership Conference on April 19.

The pictures are in and the full gallery is available Facebook. Here are a few highlights from the conference:

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Michael Keeling, ESOP Association
Addresses the audience during his morning keynote speech.

Congratulations to our Award Winners (left to right) Carbo Forge, Inc, 25 Years of Employee Ownership Equity Engineering, Getting Your ESOP Off to a Good Start Kramig Insulation, 25 Years of Employee Ownership

Congratulations to our Award Winners
(left to right)
Carbo Forge, Inc, 25 Years of Employee Ownership
Equity Engineering, Getting Your ESOP Off to a Good Start
Kramig Insulation, 25 Years of Employee Ownership

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Corey Rosen, NCEO
Skyping in his Lunch Keynote after his flight was cancelled due to weather.
Rosen was also this year’s recipient of the John Logue Employee Ownership Excellence Award.

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Bill McIntyre, Former Director of the OEOC, receives a surprise in honor of his retirement.

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Thanks again to our sponsors!

There are more photos to check out on our Facebook Page!

Time to Reserve a Spot for the May 21 CEO/CFO Networking Dinner

Our Popular CEO / CFO Networking Dinner

Will be in Columbus!

Tuesday, May 21

SAVE THE DATE & RESERVE A SPOT
by calling the OEOC at 330-672-3028
or emailing the name, title, company, and email address of anyone in your company who will be attending to oeoc@kent.edu.

“Visit Star Leasing, have dinner, and network”

Star Leasing Company, headquartered in Columbus, has been providing a quality one-source solution to its customers’ semi-trailer needs since 1974. Star Leasing’s overall objective is to be the “One Solution” (Rent, Lease, Sell, Maintain) for semi-trailer needs for all of their customers. The company provides tailored lease and rental programs for semi-trailers including complete maintenance service with full service locations in Ohio, Indiana, Georgia, North Carolina and Alabama. Star also provides trailer maintenance for customer owned equipment. Their typical customers are private & contract transportation fleets and motor carriage companies. Star became 100% employee owned in 1987 and has nearly 200 active employees.

To learn more about Star Leasing, visit its website at www.starleasing.com

star leasing 1
star leasing 2
star leasing 3

This event, always popular with ESOP company executives, will be hosted by Jeff Rosen CFO at Star Leasing. Join your fellow ESOP managers to observe this very unique company and share ESOP ideas. There is no charge for this event. We welcome top management from ESOP companies to attend, not necessarily only those with CEO and CFO titles.

The session will include a company tour, dinner, networking and Q & A.

Tentative agenda:
4:30pm – Arrive, refreshments/networking and Star Leasing tour
6:30pm – Dinner, and Question & Answer Session
8:30pm – Ajourn

For reservations please call the OEOC: 330-672-3028

Bipartisan Bill Introduced in Support of Employee Ownership (S. 742)

On April 17, Senator Ben Cardin (D-MD) and Senator Pat Roberts (R-KS) introduced bipartisan legislation based on a survey released by the Employee Benefit Research Institute stating that 28% of Americans worry that they won’t have enough money to retire. According to Cardin and Roberts, Employee Ownership offers a sound solution to this problem.

Far too many Americans are inadequately prepared for retirement. Our legislation is about helping workers save by giving businesses the tools they need to create jobs and promote adequate retirement savings.  It will strengthen a structure that promotes employee-ownership and helps workers build secure retirements…
-Senator Ben Cardin

Alex Brill of the American Enterprise Institute and CEO of Matrix Global Advisors, argues that employee stock ownership plans have higher productivity and resilience. The bill introduced by Roberts and Cardin would encourage the formation of S-Corp ESOPs, because this type of ESOP has been particularly successful in terms of longevity, wages, and growth.

S ESOPs have also proven more resilient in the face of economic distress, outperforming other private U.S. employers during the recent recession.
-Alex Brill

Among the positive impacts of an S ESOP according to Brill are $77 billion in labor income, $246 billion in output, and $27 billion in tax revenue from 1.4 million jobs. More details on the Brill’s research can be found in his study, Macroeconimic Impact of S ESOPs on the U.S. Economy.

More information on the proposed bill, Promotion and Expansion of Private Employee Ownership Act of 2013 (S. 742):

Center for American Progress Calls for Inclusive Capitalism

Growing the Wealth: How Government Encourages Broad-Based Inclusive Capitalism, a report recently released by the Center for American Progress shows that inclusive capitalism, defined as “…granting workers ownership stakes in the company or a share of its profit based on workers’  collective performance…” has helped companies grown in the U.S.

Inclusive capitalism, when partnered with democratic workplace practices, has a proven record of helping workers and businesses alike in a myriad of ways.

ESOPs are an effective means of rewarding employees and generating wealth and are included in the report;

Douglas Kruse, professor and director of the doctoral program in industrial relations and human resources at Rutgers University, found that productivity improved by 4 percent to 5 percent on average in the year of ESOP adoption and continues after adoption, more than doubling the rate of annual productivity growth of the U.S. economy over the past 20 years.

The report combines basic knwoledge about inclusive capitalism including the types that are currently practiced as well as information on existing and historic legislation and the political landscape of broad-based capital-sharing programs.

For more information, and to download the full pdf of the study, see the Center for American Progress webpage.