Tag Archives: ESOP

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.

The Employee Ownership Foundation’s 2013 Employee Owner Retreat

The Employee Ownership Foundation’s 2013 Employee Owner Retreat will be held in Downers Grove/Chicago IL – August 15-17, 2013.

The Employee Owner Retreat is a two-and-a-half day, off-site training seminars staffed by the Ohio Employee Ownership Center, where non-managerial employee owners learn from and interact with their peers from other ESOP companies.The program, geared toward hourly and salaried non-managerial employees, will help participants develop team problem solving skills, become more knowledgeable about ESOPs and company financial statements, and gain a new perspective on employee ownership at their companies through structured exercises and informal discussions.

Employee Owner Retreat alumni say:

“I think this retreat was a positive experience and has given me a lot of good ideas to take back to my company. Very helpful!”

“I learned a lot from presenters and employee owners. Thank you.”

“Very valuable, and an opportunity to meet other champions, share ideas, and create resources.”

Visit the OEOC Website for more information

If you have questions or need more information call: The OEOC, Jay Simecek, 330-672-3028 or the ESOP Association, Rosemary Clements, 202-293-2971

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

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):

New Issue of Owners @ Work Now Available

Cover imageCovered in this issue:

  • We the Owners: Telling the Employee Ownership Story With Images–An Interview with Mary Ann Beyster
  • George Cheney Returns to Mondragon
  • The Myth of the ESOP as a Gift
  • OEOC Answers Questions About Crowdfunding
  • The Cooperative Development Center at Kent State University: Celebrating the “International Year of the Cooperative”
  • Ohio ESOP Update: Ohio’s ESOP Companies Regain Ground Lost to the Great Recession, While Paying Almost $16 billion to Retirees and Beneficiaries

Available in 3 web-optimized formats:

Employee Ownership News: Employee-Owned Companies Celebrate Milestones

Earlier this month, SS&G, an employee-owned accounting firm based in Montrose, Ohio, celebrated their 25th anniversary. SS&G began with only 2 employees, and since then the firm has grown to become the 41st largest accounting firm in the US with more than $70 million in revenue last year and more than 450 employees. To celebrate their anniversary, the firm hosted a luncheon program for the Greater Akron Chamber’s Young Professional Network members. Read more on this story from the Beacon Journal.

Business Wire recently announced the accomplishments of Neuberger Berman since they converted to employee-ownership three years ago. In their goal to become 100%  employee owned, the company committed to and began payments on equit purchases from Lehman Brothers Holding in April 2012. Since March of 2011, they have acquired $11.5 in new institutional business and increased mutual fund assets  by 11%.

Long Island Business News reported that the employees of Peerless Electronics have purchased 100% of the firm through an ESOP as of May 30. The executives agreed that an ESOP was the best way to “ensure the continued success of Peerless for the benefit of its employees, customers and suppliers.

An ESOP Top Ten: Issues to Consider

This article appeared in the New South Chapter of the ESOP Association quarterly newsletter and was shared by Bradley Arant Boult Cummings LLP.

When considering, creating and administering an ESOP, there are some important issues that should be considered including valuation, diversification, the role of employee owners, and debt services.

Regardless of how an ESOP is used, there are some unique concerns that plan sponsors, trustees, and other fiduciaries of such plans should consider in connection with the creation and ongoing administration of the ESOP.

Read the entire article here.

Employee Ownership Drives NE Ohio’s Economy

The Cleveland Plain Dealer, as part of their special section in Sunday’s paper on small business in Ohio, highlights a number of ESOP companies and how they use employee ownership as a tool to “enhance attitudes and performance.” Some nice quotes…

“We’ve had a tremendous string of growth in the last 10 years,” said Daniel Sedor, president and chief executive officer. “Employees have seen their stock value triple.”

“I think as employee owners you take more pride in what you’re doing,” said Cherie Weaver, marketing coordinator for Prentke Romich. “That’s the way I feel about it and I’ve been here 28 years.”

“As an employee-owned company, Oswald Companies has a heightened sense of urgency when it comes to service and performance, as we have a vested interest in our clientele and the communities we serve,” said Marc S. Byrnes, the company’s chairman and chief executive officer.

The piece also features an interview with our very own Jay Simecek. Well worth a read!

Ohio’s Award-Winning Employee Owners

CTL Engineering is OH/KY Employee-Owned Company of the Year – CTL Engineering was named the 2011 Employee-Owned Company of the Year by the OH/KY Chapter of The ESOP Association. CTL is 85% employee-owned through an ESOP established in 1998. Combining strong management with employee ownership and involvement that includes strategic planning, the Columbus-headquartered, firm has 250 employees in nine offices in OH, IN, and WV. CTL provides engineering, testing, analysis and consulting services in environmental, geotechnical, roofing, forensic and civil engineering areas.

Perry Corporation’s ESOP Video Wins National Communication Award – Perry Corporation of Lima took The ESOP Association’s Annual Award for Communications Excellence (AACE) in the Audio Visual category.  TEA President, Michael Keeling, praised the video for its use of humor to communicate the link between ESOP participation and the long-term rewards of ownership and business success. Featuring a Gilligan’s Island theme with Perry’s ESOP committee members dressed as the show’s TV characters, the video was enjoyed by hundreds of attendees at the TEA 34th Annual Conference and AACE exhibit in Washington DC.

CTL’s Becky Carroll is OH/KY Employee Owner of the Year – Becky Carroll, Payroll Administrator of CTL Engineering, is the 2011 Employee Owner of the Year for the Ohio/Kentucky Chapter of The ESOP Association. With 11 years at the firm, she serves on CTL’s ESOP Education Committee, also known as the Fun Czars, whose three members lead and promote “celebration, teaching, learning, and ownership” company-wide. “As a member of the ESOP Education Committee, it is my duty to educate our employees on the importance of the ESOP.  I feel I make a difference when employees take ownership and pride in where they work,” she remarked.

PRC’s Team wins OH/KY Group Excellence Award – The ESOP Communication Committee of Prentke Romich Company was selected by the Ohio/Kentucky Chapter of The ESOP Association as the winner of the 2011 Group Excellence Award. This annual award acknowledges companies that have excelled in communicating the ESOP  and its meaning to the company’s employees. PRC is a worldwide leader in the development and manufacturing of augmentative communication devices and other assistive technology for people with speech and other disabilities. PRC is 100% employee-owned through their ESOP established in 2003. Headquartered in Wooster, the firm employs 165 people worldwide. The ten members of the ESOP Communication Committee represent each area of the company.  They develop company-wide education through the internet, annual participant meetings, small-group birthday lunches with their company president, matching of  new employees with senior employees, and learning games with cash prizes.

Andrew Kulesza is 2011 Outstanding TEA Board Member – Andrew Kulesza, CFO/Treasurer of RE Kramig & Co., headquartered in Loveland, was named the 2011 Outstanding Board of Governors Member by The ESOP Association for his volunteer service and strong support of the Association’s government affairs activities. “Andrew has worked enthusiastically to advance the cause of employee ownership, particularly with leading think tanks and federal officials,” said J. Michael Keeling, ESOP Association President.

Ohio Community of Care Center Goes 100% Employee Owned

Note: In addition to highlighting news about employee ownership, small business issues, and other interesting items from around the country and the world, we plan on using this blog to highlight interesting news and events from employee-owned businesses in our own backyard of Ohio. This first entry comes from Karen Thomas, Program Coordinator of Ohio’s Employee-Owned Network.

Congratulations to the employees, residents and families of Stow-Glen Retirement Village in Stow, Ohio on becoming a 100% employee owned community of care on September 15, 2010.

Stow-Glen’s 250 employees offer skilled nursing, intermediate nursing, assisted living (5 levels of care), and independent living services to over 300 residents and also provide adult day care, home health care, STNA training & testing and catering services.  Their website has more news and information about their history, mission, and ESOP.