JB Steel becomes 100% employee owned
The founders opted to transition ownership to their employees as part of their overall succession strategy.
By: JB Steel
TUCSON, Ariz. - Sept. 16, 2016 - PRLog -- J.B. Steel, an American Institute of Steel Construction (AISC) certified steel fabricator and an AISC certified steel erector located in Tucson, Arizona, has become 100% employee owned.
With the help of The Menke Group, J.B. Steel has extended ownership to their employees by way of an Employee Stock Ownership Plan.
In addition to helping create financial security for employees, the plan is designed to encourage and reward increased employee productivity and efficiency. According to The Menke Group, a 5 or 10 percent increase in individual employee productivity can result in increasing company profitability by 50 percent or more. The ESOP creates a direct link between employee productivity and employee benefits, and nurtures a collaborative culture where the employee-owners and the bottom line can thrive.
"An ESOP creates a great retirement benefit for our employees and ensures that our employees are rewarded for their hard work and the success of the company," says Nelson Brown, President of J.B. Steel. "It is also important to us that our current and future customers know that there is a transition plan in place and that J.B. Steel will continue to operate for many years to come, with all of our valuable employees now being owners of the business. We want to thank the Menke Group for their excellent advice and counsel in structuring and launching the ESOP for us."
ESOPs work particularly well in companies where human capital is a key component of success. An ESOP rewards and retains staff in a remarkably efficient manner, allowing for a well-executed succession strategy.
The Menke Group has over 40 years' experience creating and administering ESOPs, and has helped over 3,000 companies become employee owned. You can learn more about employee stock ownership plans by visiting the Menke Group's website.
Menke & Associates, Inc