Going Employee Owned

[Erik Sine]

Interesting....

 

I see this from time to time on the news, large sing companies going Employee Owned.  Anyone here made that transition?  I Am curious on what it's been like since doing and what the pros and cons of doing that?

 

I imagine having every employees as part owners there are exemptions???

 

Thoughts???

 

Lytle Signs becomes employee-owned

TWIN FALLS — An Idaho-based sign product manufacturing, service and installation company has sold into an employee ownership plan.

Lytle Signs Inc. has 85 employees based in Twin Falls and Meridian. The Lytle family has owned and operated the Twin Falls sign company since 1948.

 

“I have seen a lot of changes in the last 35 years here at Lytle Signs,” general manager Mark Crider said in a statement. “By far this is the most exciting for me. I feel that our people are ready to take on ownership and to carry on the great tradition of quality sign products. I see nothing but future growth for me and my fellow employee-owners.”

 

 

Rex Lytle will continue on with his duties as president and chairman of the board of Lytle Signs, and Emmie Lytle will continue as a board member and corporate secretary.

 

“I am excited to know that my family’s business and the legacy of Lytle Signs will continue on into the future for the benefit of our employees and customers,” Rex Lytle said.

[mandersen]

We have been employee owned for about 10 years now. 

 

To clarify what employee owned means,,,You get stock in the company by giving them years of service. Not much different then owning stock in AT&T you have no say in how the company gets run. there is no investment from the employee except sweat equity.

 

Your daily efforts make the company money and in return you get the benefit of rising stock price. 

 

It has been great for us and our employees. last year my stock value increased more than my yearly salary. In effect i received more than a 100% pay boost for the year.

 

The other catch is that you cannot touch the money until you quit or retire. If you quit before retirement age you need to transfer that money into an IRA or it will be taxed plus penalties.