Each year, the Hawaii region of the federal Small Business Administration (SBA) awards the state’s best small businesses and small business advocates. On February 28, 2013, at the Hawaii Small Business Luncheon, the SBA awarded Frieda S. Takaki, CEO/President of CHART Rehabilitation of Hawaii, and Chair of the Employee Ownership Foundation, the coveted Financial Services Champion of the Year for the City and County of Honolulu. Ms. Takaki received this award for her long standing commitment and dedication to ensure that island businesses are aware of ESOPs and how employee ownership can have such a positive impact culturally and financially in employee-owned companies. This award also recognized Ms. Takaki for being the main driving force in having CHART’s ESOP loan completely paid off in 2012. Ms. Takaki credits her workers for the company’s success — and her talk isn’t cheap. All 34 employees are beneficial owners of the 100% employee-owned company and share in the company’s profits. She was quoted in the March 2013 issue of Hawaii Business Magazine, “Our staff is very committed and loyal and takes care of the company as their own.”
Gibson, an ESOP Association member located in South Bend, IN, was recently named as one of the 2013 Best Places to Work in Indiana by the Indiana Chamber of Commerce. The statewide survey and awards program is designed to identify, recognize, and honor the best places of employment in Indiana, benefiting the state’s economy, its workforce, and businesses. More information about the awards program is here.
Gibson will be recognized at the Best Places to Work in Indiana Awards Dinner in May.
Gibson is a 100% employee-owned (30% ESOP), regional insurance broker and risk management services firm with offices in South Bend, Plymouth, Indianapolis, and Ft. Wayne, Indiana.
Congratulations to the employee owners of Gibson on being named among the Best Places to Work in Indiana.
Thanks to Keith Stone, Principal and Chief Financial Officer of Gibson for sharing this news with The ESOP Association.
The ESOP Association sent out the following release this morning. We wanted to share the news with readers here. Congratulations to the 2013 ESOP Silver Award Recipients.
The ESOP Association Announces 2013 Silver ESOP Award Recipients
March 26, 2013 (Washington, DC) – The ESOP Association has presented 26 corporate members of the Association with a Silver ESOP Award to recognize their work in sustaining their ESOP (employee stock ownership plan) for 25 years or more. This year, the Silver ESOP Awards are being presented to companies that will be celebrating 25 years or more as an ESOP company in 2013.
This is the sixth year the Silver ESOP Awards have been presented by the Association. In 2008, 117 corporate members were presented with the first annual Silver ESOP Awards; 2009, 12 members; 2010, 22 members; 2011, 41 members; and in 2012, 49 members were honored. To be named a Silver ESOP Award recipient, a company must be a member of The ESOP Association and have an ESOP in place for 25 years or more.
“It is my pleasure to present these 26 companies with the 2013 Silver ESOP Award for excellence in sustaining their ESOP for 25 years,” said ESOP Association President, J. Michael Keeling. “Research proves that ESOPs, and companies with other forms of employee stock ownership, provide more sustainable employment. Policies to encourage employee stock ownership, and new policies to increase ownership among more working Americans, need to be considered by our national leaders.” 2013 Silver ESOP Award Recipients:
Anderson & Associates, Inc., Blacksburg, VA
Beacon Technical Industries, Inc., Atlanta, GA
Bobbitt Design Build, Inc., Raleigh, NC
Bradford Company, Holland, MI
Brunson Instrument Company, Kansas City, MO
Century Bank & Trust, Coldwater, MI
DCI, Inc., Saint Cloud, MN
Dexter Apache Holdings, Inc., Fairfield, IA
Energy Product Sales, Saint Paul, MN
Forsythe Technology, Inc., Skokie, IL
Frank P. Langley Co., Inc., Amherst, NY
Gardener’s Supply Company, Burlington, VT
Howard’s Appliances, Inc., La Habra, CA
ITA Group, Inc., West Des Moines, IA
John Latta Associates, Inc., Portland, OR
John W. Danforth Co., Tonawanda, NY
Keenan & Associates, Torrance, CA
Keller, Inc., Kaukauna, WI
Lamp, Rynearson & Associates, Inc., Omaha, NE
Pension Works, Inc., Colchester, VT
Precise Metal Products Company, Phoenix, AZ
RPM, Inc., Grand Rapids, MI
SJE-Rhombus, Detroit Lakes, MN
Staab Construction Corporation, Marshfield, WI
West Valley Construction Co., Inc., Campbell, CA
Wheaton Van Lines, Inc., Indianapolis, IN
All 267 Silver ESOP Award recipients will be honored at The ESOP Association’s Annual Conference in May (May 9 – 10, 2013) and highlighted at the 22nd Annual Awards Ceremony held on the evening of May 8th.
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The ESOP Association is the national trade association for companies with employee stock ownership plans (ESOPs) and the leading voice in America for employee ownership. The core cause of The ESOP Association is the belief that employee ownership will improve American competitiveness, increase productivity through greater employee participation, and strengthen our free enterprise economy. More information: website – www.esopassociation.org and blog – www.esopassociationblog.org.
The following article is authored by Jeffrey Gelburd, CPCU, ARM, Vice President of Murray Securus, located in Lancaster, PA. Mr. Gelburd developed The ESOP Association endorsed Executive Liability Insurance Program in 1989. Information about the program can be found on the Association’s website here. For additional information, please contact Mr. Gelburd directly at 717-620-2476 or by email at jgelburd@murrayins.com.
Jeffrey Gelburd
Effective January 1, 2013, Murray Securus, the administrator of The ESOP Association’s affinity insurance program insuring over 250 ESOPs around the country and Great American Insurance Company introduced a new policy endorsement that expands the fiduciary liability insurance protection available to Association members.
The insurance policy extensions available through this endorsement are as follows:
Will cover civil penalties under HIPPA, 502(c) of ERISA, the Pension Protection Act of 2006, the Patient Protection and Affordable Care Act (PPACA) and certain penalties under the Internal Revenue Code and ERISA
Now covers certain expenses associated with numerous voluntary compliance resolution programs administered by the IRS, PGBC and DOL
Will include the cost of hiring an outside trustee as part of the defense costs on a covered claim.
Expands the definition of covered Wrongful Acts to include claims made against the insured solely by reason of their status as a settlor of a covered Plan.
Provides contingent bodily injury coverage for claims involving the denial or delay of benefits under a Welfare Plan.
Expands coverage to those plans that are maintained in a jurisdiction outside of the United States.
This endorsement is available in most states and can be offered to new policyholders or to current insured’s in The ESOP Association’s affinity program at the time of their next policy renewal.
These coverage extensions are being made available exclusively through Murray Securus.
Will you be joining us for the 36th Annual Conference in Washington, DC on May 9th and 10th this year? If so, don’t forget about the Awards Ceremony on the evening of May 8th to honor the 2013 AACE Award and ESOP Award winners.
This year, each registrant for the 36th Annual Conference is entitled to one ticket to the Awards Ceremony; the ticket price is included in the registration fee. Come celebrate employee ownership with employee owners from across the nation.
In advance of the 2013 Awards Ceremony, we thought we’d take a look back at the 2012 AACE Award winners. Click on the video below to view a brief re-cap of some of the 2012 winners.
We hope to see you at the Awards Ceremony in Washington, DC on May 8th.
Details on the 2013 Annual Conference:
36th Annual ESOP Conference
“ESOPs: Your Job, Our Job, America’s Job”
May 9 & 10, 2013
Awards Ceremony the evening of May 8th Renaissance Washington Hotel
Washington, DC
Contact Rosemary Clements or Maya Van Buren (202) 293-2971 or meetings@esopassociation.org
Today, we welcome David M. Davidson Jr., Chief Financial Officer of C.S. Davidson, Inc. located in York, Pennsylvania. C.S. Davidson is a member of The ESOP Association and will be celebrating 90 years in business this year. In this guest post, Mr. Davidson shares his thoughts on the value of employee ownership. Congratulations to C.S. Davidson on a successful 90 years.
C. S. Davidson, Inc: From Family-Owned To Employee-Owned Business
David M. Davidson Jr., P.E., P.L.S., Chief Financial Officer, C.S. Davidson, Inc.
By David M. Davidson Jr., P.E., P.L.S., Chief Financial Officer, C.S. Davidson, Inc.
In 1923, Carl Schaefer Davidson opened a modest surveying and engineering business in Hanover. He later moved to York and, in 1948, incorporated the business as C. S. Davidson, Inc. This is the story of a company that spanned three generations of the Davidson family, and continues to this day as an ESOP, or employee-owned, business.
Things were much more straightforward in the early years. There were no regulations to speak of, and zoning was a concept that had only recently been introduced in New York City. Engineers were hired for their imagination, creativity and ability to design. Calculations were done painstakingly by hand – our archives are filled with hand-lettered calculations and meticulously drafted diagrams that reflect the time that could be spent on the design of a project. Labor was cheap back then – old invoices show surveyors’ billing rates of less than a dollar an hour.
From the very beginning, C. S. Davidson, Inc. was very much a family-owned and family-operated business. Carl’s sons David and Bayard and I, his grandson, got our introduction to “engineering” by working on survey crews, cutting brush and carrying bundles of stakes. My father, David Sr., became president of the firm in 1965, and I in 1983.
At some point, every business owner has to deal with “ownership transition.” The options are limited: internal sale, external sale or closing the doors – although there are many variations within each option. We initially attempted a direct sale of stock to a limited number of employees. As is usually the case, the value of the business exceeded the financial resources and/or risk tolerance of the prospective purchasers. We could see that a straight cash sale would never accomplish the intended goal.
We have never considered a sale to an outside interest, although we receive many inquiries. Acquisition by another firm—no matter how similar in services and size—would inevitably lead to the loss of the culture that makes us uniquely “CSD.” Even though we’ve become a large firm (by local standards at least), we’ve managed to retain the feeling of a much smaller firm. We like that.
An ESOP (“Employee Stock Ownership Plan”) seemed to be the answer. Not only does it provide a mechanism to gradually transfer ownership to employees, it doesn’t require any investment (other than their continued hard work!) on their part. It has the added advantage of a tax-deferred sale (to the owners), a tax-deferred retirement benefit (to the employees) and a tax deduction (to the corporation).
In addition to the tax advantages, it has a less tangible (but in my opinion, more important) benefit of educating everyone to think like they’re an owner. It may seem an insignificant distinction, but as time goes on it is essential that the sense of ownership, as well as the actual ownership, changes hands. It’s the only way that CSD can expect to enjoy continued success for, hopefully, another 90 years.
All in all, an ESOP seemed like the right thing to do from a variety of perspectives. It was expensive, time-consuming and difficult – but in the long run it will be one of the best investments we’ve ever made.
“ESOP companies create great place to work. Congratulations to our members,” said J. Michael Keeling, ESOP Association president. “An Employee Ownership Foundation survey conducted in 2012 showed that 93.3% of survey respondents reported that creating employee ownership through an ESOP was ‘a good business decision that has helped the company.’ In addition, 76% of respondents indicated the ESOP positively affected the overall productivity of the employees. It would be a shame if the Congressional bipartisan support for our modest national policy encouraging employee ownership was not enhanced as Congress looks for a ‘common’ ground policy encouraging U.S. based jobs.”
To view the complete list, click here and for information about the companies click here.
Yep, see us! On Flickr that is. We uploaded photos from the recent 2012 Las Vegas Conference and Trade Show held November 8th and 9th at Caesars Palace in Las Vegas, NV. Take a look and see if we caught you networking at the Trade Show. You can find The ESOP Association’s Flickr page here. Below is a preview.
Over the past few weeks, several ESOP Association members met with their members of Congress. We wanted to feature a few here.
Cirtronics Corp., located in Milford, NH, meet with Congressman Frank Guinta (R-NH) who co-sponsored H.R. 1244, the Promotion and Expansion of Private Employee Ownership Act of 2011.
ComSonics, Inc., located in Harrisonburg, VA, kicked off the company’s Employee Ownership Month celebration with a Congressional visit; hosting Congressman Bob Goodlatte, (R-VA) at the company.
Wiley & Wilson, Inc., located in Lynchburg, VA, wrote letters to both Senatorial candidates in Virginia, Tim Kaine and George Allen.
Rex-Cut Products, Inc., located in Fall River, MA, met with Republican Congressional Candidate Sean Bielat of Massachusetts. The visit was also a feature in The Herald News in Fall River, MA. You can read the article here: RexCut Article.
Restek Corporation, located in Bellefonte, PA, will meet with Senator Toomey’s (R-PA) regional manager and the state director in late November 2012.
We know many ESOP companies are working to setup visits with members of Congress. Additional information about pro-ESOP bills and how to go about setting up a meeting can be found on The ESOP Association’s website here.
Employee Ownership Month 2012 was a great month for ESOP Association members. Below are a few of the stories they shared with us this year. Enjoy!
Webb Landscape, Inc. — The employee owners of Webb Landscape, Inc., in Bellevue, ID, organized the 1st Annual ESOP Appreciation Month Bowling Party on October 20th. It’s an event meant to get ESOP companies together to network, exchange ideas, and socialize with other employee owners in the Twin Falls area.
Adworkshop — Adworkshop, located in Lake Placid, NY, celebrated its 5th anniversary as an ESOP during Employee Ownership Month. To commemorate this milestone, Adworkshop’s 30 employee owners participated in ESOP education and community minded activities focused on supporting local thrift stores and food pantries preparing for the holiday season. A month of activities, community outreach, and ESOP education took place, as well as planning for an “Adirondack Safari – Employees Gone Wild,” featuring a scavenger hunt and photo contest. From Adworkshop’s Facebook page: Stay tuned! During October, in celebration of National ESOP month, the Adworkshop team participated in an “Adirondack Safari” photo contest. Each day next week a new photo will be posted – check back to see the entries and “like” and comment on your favorites! Check out all the amazing photos on their Facebook page.
TKDA— TKDA, in St. Paul, MN, celebrates ESOP Week annually during October. 2012 events included a bean bag toss competition with 32 teams at the Saint Paul office participating. The Saint Paul IT team came from an almost 10 point deficit to win. The Duluth office also held a competition, and set the standard with TKDA logo customized bean bag boards. The Downers Grove office had a bowling competition. The Downers Grove group didn’t really keep score, but enjoyed the competition and were grateful no one suffered any permanent injuries! Other events included a service award luncheon with guest speakers talking about Wellness in the Workplace. In Saint Paul, Larry Bohrer was recognized for 40 years of service to TKDA. The branch offices celebrated at different times during the month when President/CEO, Bill Deitner, and the branch division vice president visited the office and recognized the new employees and service award winners. A Professional Growth and Development Seminar panel facilitated by Greg Barlow, Vice President – Human Resources, was also held. The panel was comprised of several TKDA employees who shared their career story with an emphasis on individual career growth at TKDA. The week concluded with a new employee luncheon at the Saint Paul office. The new employees who started at TKDA since last year’s ESOP week were recognized and learned more about ESOP and what it means to TKDA.
Ulteig Engineers, Inc. — Ulteig Engineers, Inc., in Fargo, ND, celebrated Employee Ownership Month with a variety of events geared toward educating employees about their ESOP, spending time together in a fun-filled environment, and thanking employees for their hard work and dedication. The company kicked off the month by hosting an ESOP Lunch and Learn that featured Chief Financial Officer and ESOP Administration Committee Member, Steven Maag, and Finance and Accounting Director, Chris Flanagan, discussing the specifics of the ESOP and explaining how employees receive their share of the company’s stock value. The pair also answered questions employees had regarding the ESOP. By the end of the week, each employee received a treat featuring an employee-ownership fact. For the sixth year in a row, employees in seven different offices faced one another in a battle of the best recipe during the annual chili cook-off. In all offices, employees tasted more than 30 different types of chili and named a cook-off champion for each office, with each champion receiving an engraved ladle. At the end of the month, employees teamed up to carve or decorate pumpkins that were judged on creativity, artistry, and Ulteig pride. Twelve entries were submitted but only one earned the top spot in each of the three categories. Also in October, employees received a company store gift certificate to purchase clothing, hats, or other Ulteig gear. Employees could also respond to the question, “What does working for an employee-owned company mean to you?” for a chance to win an ESOP t-shirt.
Great Lakes Orthodontics — Great Lakes Orthodontics, located in Tonawanda, NY, celebrated throughout the month with different activities and giveaways. This year started with a contest where employees were invited to take the letters E S O P and come up with what ESOP means to them. The winners were given gift cards. A large ESOP cake was also served. There were chocolate, marble, yellow, and white almond layer cakes to choose from. The managers and ESOP trustees served breakfast to all the employees the following week. On the final Friday of October, each employee received a backpack with the ESOP logo that was created for the month.
First National Bank Bemidji — Since 2006, First National Bank Bemidji, in Bemidji, MN, has chosen a week in October to celebrate the company’s ESOP and have fun. This year the theme was “Fall Fest.” The ESOP Communications Committee began planning this year’s events in mid-August to ensure a fun-filled week for all employee owners. The events began on Thursday, October 4th, with a kick-off meeting to share all of the fun events planned for the following week. The Bank’s President, Tom Welle, gave a business update that tied back to the Fall Fest theme and stated that each employee owner plays a critical role in “harvesting” our business. The employee owners were quite proud when it was announced that just days prior, the Bank received a Weiss Rating of A+, which less than 2% of banks receive! Next, one of the company’s Vice Presidents, Hugh Welle, had the opportunity to be dressed as a scarecrow, with each item he wore tying back to employee ownership (picture a long wig to represent fast hair growth…just like the amazing growth of the ESOP). This event outlined the scarecrow building contest that seven teams throughout the Bank would compete in during our October 11th staff meeting. The other twist….each team could only use items beginning with one letter that they drew out of a hat, with the options being: F N B – E S O P. Other events planned for ESOP week included Pumpkin Slingshot, Pumpkin Shot Put, and Pumpkin Bowling, all of which were played in the bank’s courtyard. Throughout ESOP Week, there was also a fall-themed baking contest, an “ESOP-Themed” Pumpkin Carving Contest, and a fun 20-Questions game for employees to learn more about our ESOP. Employee owners were given lanyards stating their name and “I’m and owner” to wear throughout the week as well as a treat bag full of Halloween candy. Popcorn was available throughout the week for everyone at all branches, and the company also catered in a Thanksgiving meal for lunch. When it came time for teams to display what they had created for the scarecrow building contest on Thursday, October 11th, everyone enjoyed a breakfast from McDonalds that was generously provided in exchange for the fundraising/donations that staff would be participating in the following week for the Ronald McDonald House…another great partnership the company created in the community. The morning was filled with laughter as employee owners displayed their creativity in the scarecrow presentations. Prizes were awarded for several events throughout the week, and all prizes tied back to the Fall Fest theme, or to the company’s 27th year being of employee-owned!
Bauer Welding & Metal Fabricators, Inc. — Employee owners of Bauer Welding & Metal Fabricators, Inc., located in Mounds View, MN, celebrated Employee Ownership Month in a couple of ways: A food drive for the local food shelf yielded 115 lbs and $50 donated to the Ralph Reeder foodshelf in New Brighton. A pie and ice cream social (Owning ESOP stock is like having a piece of the pie!) was also held for employee owners.
ComSonics, Inc. — ComSonics, Inc., located in Harrisonburg, VA, kicked off the company’s Employee Ownership Month with a Congressional visit; hosting Congressman Bob Goodlatte, (R-VA).
Sletten, Inc. — Sletten, Inc., in Great Falls, MT, held an ESOP chili contest and about 30 people came in on their lunch hour to participate. There were three different ESOP companies represented and Mike Golie, from Inland Truck Parts, of Overland Park, KS, won first prize. People voted for their favorite by bringing in food or donating cash to the local food bank.
Restek Corporation — Restek Corporation located in Bellafonte, PA held a flag raising for the ESOP flag. This was the company’s finale for ESOP month and they later had an ice cream social in the atrium (lunch/break area). Restek’s EOCT (Employee Owners Communication Team) held a food social each week: donuts/coffee the first week, star cookies during week two, small pies for week three, and capped it off with the flag raising. The company also had a company wide contest about the company’s corporate governance document. They sent 22 questions around and if a person completed the quiz, they were entered into a prize drawing, and if they answered all questions correctly, they were entered in the grand prize drawing; both for different tiered gift cards.
Apache, Inc. — Apache, Inc., located in Cedar Rapids, IA, as noted via The ESOP Association’s Facebook page: Apache is celebrating with events all month long including a chili cook-off, golf chip shot contest, tug-o-war, football toss, and poster contest! Check out their Facebook page.
WinSystems, Inc. — WinSystems, Inc. in Arlington, TX, created a video about being employee owned and posted it to YouTube. Watch it here.
Woodward Communications, Inc. — The employee owners at Woodward Communications, Inc., in Dubuque, IA celebrated Employee Ownership Month with an ESOP cake!
Pacific Steel & Recycling — Pacific Steel & Recycling, in Great Falls, MT, according to their Facebook page: Although Halloween marks the end of Employee Ownership Month, here’s a message from the President of The ESOP Association, J. Michael Keeling, on the importance of celebrating being an ESOP. We can apply his ideas year-round to continue making Pacific a unique and successful ESOP. Check out their posts.
Murray Securus — Murray Securus celebrated Employee Ownership Month by having the local representative from Senator Pat Toomey’s office speak to the employees. We will follow up this visit by having a visit to the Senator’s office in Harrisburg to discuss employee ownership. Mike Shuey of Restek and 2012 Employee Owner of the year of the PA/DE chapter followed the presentation with a presentation on how Restek engages their employees in the ownership culture.At the conclusion of the meeting, employees were given a mouse pad having our new logo and an employee ownership quote on the cover.
This is only a sample of events that happened across the country to celebrate Employee Ownership Month in 2012. We thank our members for sharing their ESOP stories with us. It was a great month for celebrating ESOPs!
Welcome to the employee ownership blog of The ESOP Association. The place where you'll find the latest information on ESOPs and employee ownership news. Serving the entire ESOP community.
Each year, the Hawaii region of the federal Small Business Administration (SBA) awards the state’s best small businesses and small business advocates. On February 28, 2013, at the Hawaii Small Business Luncheon, the SBA awarded Frieda S. Takaki, CEO/President of CHART Rehabilitation of Hawaii, and Chair of the Employee Ownership Foundation, the coveted Financial Services Champion of the Year for the City and County of Honolulu. Ms. Takaki received this award for her long standing commitment and dedication to ensure that island businesses are aware of ESOPs and how employee ownership can have such a positive impact culturally and financially in employee-owned companies. This award also recognized Ms. Takaki for being the main driving force in having CHART’s ESOP loan completely paid off in 2012. Ms. Takaki credits her workers for the company’s success — and her talk isn’t cheap. All 34 employees are beneficial owners of the 100% employee-owned company and share in the company’s profits. She was quoted in the March 2013 issue of Hawaii Business Magazine, “Our staff is very committed and loyal and takes care of the company as their own.”
