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WithersRavenel is proud to announce that in 2019 our company transitioned to becoming 100% employee-owned via our Employee Stock Ownership Plan (ESOP) Trust.
In 2014 WithersRavenel started its transition from a privately held company to an ESOP structure. We are very excited that in just five years we have been able to complete the transition to being 100% employee owned.
“Our ESOP means that we have a unique opportunity to share in the success of our company in ways people at other companies don’t,” said Jim Canfield, President of WithersRavenel.” Our ESOP is a tremendous benefit to us as employees. Transitioning to 100% employee ownership is about maximizing those benefits for all employees and getting all of our employees thinking and acting like owners.”
Employee ownership confers several benefits. According to the National Center for Employee Ownership, ESOPs outperform non-ESOP firms. Specifically, studies have found a 4-5% increase in productivity in the year a firm adopts an ESOP. Compared to a non-ESOP firm of a similar size in the same industry, an ESOP also has significantly higher revenue growth and higher revenue per worker. As a result, ESOP companies grow 6% to 12% faster than non-ESOP companies.
In addition, firms with employee ownership demonstrate greater employment stability; this means they are more likely to weather economic volatility. They also showed a lower rate of actual layoff and a lower perceived likelihood of layoff. Improved employment stability combined with smart investments leads to ESOP employees having as much as twice the total retirement funds compared to the average non-ESOP employee.
To promote a culture of employee engagement and ownership, WithersRavenel conducted financial intelligence training across the company. Armed with knowledge about basic business principles to supplement our technical and market knowledge, our employees are better equipped to drive company performance and client service. This will create a win-win proposition for both our employee owners and our clients.