Other events, of course, may change the planned airing. Scott Forge Thrives as ESOP Company Scot Forge in Spring Grove, IL, is one of the oldest ESOPs, with a plan dating back to 1978. The metal forging company was founded in 1893 and sold to an ESOP when the then-current owner decided to use the plan as a means to provide a market for his shares. Employees have full voting rights and representation on the company's board. Monthly luncheons provide an opportunity to review the company's financial performance.
Employees get dividends on their shares and bonuses paid out three times a year.
Stack related his experience with broadened ownership at SRC, one of the country's most successful and widely-imitated industrial models. He said that the most difficult challenge was providing meaningful ownership opportunities for employees coming in after the initial transaction. He noted that the share price in many start-up or buyout situations can go up rapidly, then level off to a more sustainable growth rate. Early employees get a windfall, but more recent employees may wonder what all the fuss is about. Stack suggested helping employees form their own spin-off businesses as one approach to address the problem, but said that one of the challenges for SRC was how to find other ways as well.