The MHEDA Journal - Fourth Quarter, 2017 - 56

THE

BENEFITS
AND

Challenges of ESOPs
MHEDA members share their experiences with
employee stock ownership plans

T

BY STEVE GUGLIELMO

he topic of transition plans has been a hot button
issue throughout the industry in the last several
years. As Baby Boomers have begun retiring, they
need a transition plan to ensure that the company

continues to thrive. Some opt to sell the company to the
next generation of ownership, some opt to be acquired by
other companies. Increasingly, the option of converting the
company to an ESOP or Employee Stock Ownership Plan
has become popular. According to the National Center for
Employee Ownership, there are roughly 14.1 million ESOP
Participants and 6,717 ESOPs in the United States. We had
the opportunity to speak with four MHEDA members who
have ESOPs at their companies about the benefits and challenges of having an ESOP. Thank you so much to Mary Lou
Jacoby, CEO of Warehouse1, Matt Maddock, President of
Sunbelt Industrial Trucks, Jack Smith, lead trustee at Modern Group, and Tom Albero, President and CEO of Alliance
Material Handling, for answering these questions for this
issue of the magazine.
56

MHEDA | themhedajournal.org

The MHEDA Journal: Your company has
an ESOP, what year did you become an ESOP?
Mary Lou Jacoby: We became an ESOP
Dec. 31, 2016. We announced the transition
on Jan. 11, 2017 at a companywide meeting.
We invited all the people that were an integral
part of the 14 month long journey it took to
create the entity.
Matt Maddock: We started the ESOP in the
spring of 2012
Tom Albero: We started in 2004
Jack Smith: We started Modern Group Ltd's
ESOP program in 1984.
TMJ: Tell me about the decision-making
process that went into becoming an ESOP.
MLJ: When I began thinking about a succession plan five years ago, I initially ruled
out an ESOP. Instead, I worked on developing
and mentoring a strategic team that eventually
would run the company. But a little more than
a year ago, I revisited the ESOP model thanks
to conversations with compensation specialists.
We have the smartest, most engaged and
caring group of employees that we've ever
had in our history. I felt like it was the right
time to share and give back to them what they
had given to the organization. In the last five
years, we've had significant growth due to
these talented people.
I began attending local ESOP association
meetings and talking to companies that have
adopted the model. They shared the positives
and what they would have done differently.
This feedback from folks that had been there,
done that....It was the best and the most important piece of the puzzle that made it all fit. The
most important thing was the contributions that


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Table of Contents for the Digital Edition of The MHEDA Journal - Fourth Quarter, 2017

Chairman’s Perspective
From the Desk of Liz Richards
Editor’s Note
Ask A MHEDANET GROUP
Women in Industry Conference
MHEDA MEMBER PROFILE
@WORK
WOMEN IN INDUSTRY
INDUSTRY PULSE
2018 CRITICAL IMPACT FACTORS
DEFINING MHEDA’S 2018 CRITICAL IMPACT FACTORS
SALES SUCCESS STORIES
ESOP ROUND TABLE
FROM CHARASMATIC PERSUADER TO KNOWLEDGE BROKER: THE EVOLVING WORLD OF SALES
49 EMPLOYEE ENGAGEMENT IDEAS
DO UNTO OTHERS AS THEY WANT TO BE DONE UNTO
THE PRESIDENT’S EXECUTIVE ORDER 13789 AND ITS FUTURE EFFECT ON THE TAX CODE
New Members
Spotlight on Association News
MHEDA Milestones
Index to Advertisers by Product Category
Index to Advertisers by Alphabetical Order
The Last Word
The MHEDA Journal - Fourth Quarter, 2017 - intro
The MHEDA Journal - Fourth Quarter, 2017 - cover1
The MHEDA Journal - Fourth Quarter, 2017 - cover2
The MHEDA Journal - Fourth Quarter, 2017 - 3
The MHEDA Journal - Fourth Quarter, 2017 - 4
The MHEDA Journal - Fourth Quarter, 2017 - 5
The MHEDA Journal - Fourth Quarter, 2017 - 6
The MHEDA Journal - Fourth Quarter, 2017 - 7
The MHEDA Journal - Fourth Quarter, 2017 - 8
The MHEDA Journal - Fourth Quarter, 2017 - 9
The MHEDA Journal - Fourth Quarter, 2017 - 10
The MHEDA Journal - Fourth Quarter, 2017 - Chairman’s Perspective
The MHEDA Journal - Fourth Quarter, 2017 - 12
The MHEDA Journal - Fourth Quarter, 2017 - From the Desk of Liz Richards
The MHEDA Journal - Fourth Quarter, 2017 - 14
The MHEDA Journal - Fourth Quarter, 2017 - Editor’s Note
The MHEDA Journal - Fourth Quarter, 2017 - 16
The MHEDA Journal - Fourth Quarter, 2017 - Ask A MHEDANET GROUP
The MHEDA Journal - Fourth Quarter, 2017 - 18
The MHEDA Journal - Fourth Quarter, 2017 - 19
The MHEDA Journal - Fourth Quarter, 2017 - Women in Industry Conference
The MHEDA Journal - Fourth Quarter, 2017 - 21
The MHEDA Journal - Fourth Quarter, 2017 - MHEDA MEMBER PROFILE
The MHEDA Journal - Fourth Quarter, 2017 - 23
The MHEDA Journal - Fourth Quarter, 2017 - 24
The MHEDA Journal - Fourth Quarter, 2017 - 25
The MHEDA Journal - Fourth Quarter, 2017 - 26
The MHEDA Journal - Fourth Quarter, 2017 - @WORK
The MHEDA Journal - Fourth Quarter, 2017 - 28
The MHEDA Journal - Fourth Quarter, 2017 - WOMEN IN INDUSTRY
The MHEDA Journal - Fourth Quarter, 2017 - INDUSTRY PULSE
The MHEDA Journal - Fourth Quarter, 2017 - 31
The MHEDA Journal - Fourth Quarter, 2017 - 32
The MHEDA Journal - Fourth Quarter, 2017 - 2018 CRITICAL IMPACT FACTORS
The MHEDA Journal - Fourth Quarter, 2017 - DEFINING MHEDA’S 2018 CRITICAL IMPACT FACTORS
The MHEDA Journal - Fourth Quarter, 2017 - 35
The MHEDA Journal - Fourth Quarter, 2017 - 36
The MHEDA Journal - Fourth Quarter, 2017 - 37
The MHEDA Journal - Fourth Quarter, 2017 - SALES SUCCESS STORIES
The MHEDA Journal - Fourth Quarter, 2017 - 39
The MHEDA Journal - Fourth Quarter, 2017 - 40
The MHEDA Journal - Fourth Quarter, 2017 - 41
The MHEDA Journal - Fourth Quarter, 2017 - 42
The MHEDA Journal - Fourth Quarter, 2017 - 43
The MHEDA Journal - Fourth Quarter, 2017 - 44
The MHEDA Journal - Fourth Quarter, 2017 - 45
The MHEDA Journal - Fourth Quarter, 2017 - 46
The MHEDA Journal - Fourth Quarter, 2017 - 47
The MHEDA Journal - Fourth Quarter, 2017 - 48
The MHEDA Journal - Fourth Quarter, 2017 - 49
The MHEDA Journal - Fourth Quarter, 2017 - 50
The MHEDA Journal - Fourth Quarter, 2017 - 51
The MHEDA Journal - Fourth Quarter, 2017 - 52
The MHEDA Journal - Fourth Quarter, 2017 - 53
The MHEDA Journal - Fourth Quarter, 2017 - 54
The MHEDA Journal - Fourth Quarter, 2017 - 55
The MHEDA Journal - Fourth Quarter, 2017 - ESOP ROUND TABLE
The MHEDA Journal - Fourth Quarter, 2017 - 57
The MHEDA Journal - Fourth Quarter, 2017 - 58
The MHEDA Journal - Fourth Quarter, 2017 - 59
The MHEDA Journal - Fourth Quarter, 2017 - FROM CHARASMATIC PERSUADER TO KNOWLEDGE BROKER: THE EVOLVING WORLD OF SALES
The MHEDA Journal - Fourth Quarter, 2017 - 61
The MHEDA Journal - Fourth Quarter, 2017 - 62
The MHEDA Journal - Fourth Quarter, 2017 - 63
The MHEDA Journal - Fourth Quarter, 2017 - 64
The MHEDA Journal - Fourth Quarter, 2017 - 65
The MHEDA Journal - Fourth Quarter, 2017 - 49 EMPLOYEE ENGAGEMENT IDEAS
The MHEDA Journal - Fourth Quarter, 2017 - 67
The MHEDA Journal - Fourth Quarter, 2017 - 68
The MHEDA Journal - Fourth Quarter, 2017 - 69
The MHEDA Journal - Fourth Quarter, 2017 - 70
The MHEDA Journal - Fourth Quarter, 2017 - 71
The MHEDA Journal - Fourth Quarter, 2017 - 72
The MHEDA Journal - Fourth Quarter, 2017 - 73
The MHEDA Journal - Fourth Quarter, 2017 - 74
The MHEDA Journal - Fourth Quarter, 2017 - 75
The MHEDA Journal - Fourth Quarter, 2017 - 76
The MHEDA Journal - Fourth Quarter, 2017 - 77
The MHEDA Journal - Fourth Quarter, 2017 - 78
The MHEDA Journal - Fourth Quarter, 2017 - 79
The MHEDA Journal - Fourth Quarter, 2017 - 80
The MHEDA Journal - Fourth Quarter, 2017 - DO UNTO OTHERS AS THEY WANT TO BE DONE UNTO
The MHEDA Journal - Fourth Quarter, 2017 - 82
The MHEDA Journal - Fourth Quarter, 2017 - THE PRESIDENT’S EXECUTIVE ORDER 13789 AND ITS FUTURE EFFECT ON THE TAX CODE
The MHEDA Journal - Fourth Quarter, 2017 - 84
The MHEDA Journal - Fourth Quarter, 2017 - 85
The MHEDA Journal - Fourth Quarter, 2017 - 86
The MHEDA Journal - Fourth Quarter, 2017 - New Members
The MHEDA Journal - Fourth Quarter, 2017 - Spotlight on Association News
The MHEDA Journal - Fourth Quarter, 2017 - 89
The MHEDA Journal - Fourth Quarter, 2017 - 90
The MHEDA Journal - Fourth Quarter, 2017 - 91
The MHEDA Journal - Fourth Quarter, 2017 - MHEDA Milestones
The MHEDA Journal - Fourth Quarter, 2017 - 93
The MHEDA Journal - Fourth Quarter, 2017 - Index to Advertisers by Product Category
The MHEDA Journal - Fourth Quarter, 2017 - 95
The MHEDA Journal - Fourth Quarter, 2017 - Index to Advertisers by Alphabetical Order
The MHEDA Journal - Fourth Quarter, 2017 - 97
The MHEDA Journal - Fourth Quarter, 2017 - The Last Word
The MHEDA Journal - Fourth Quarter, 2017 - cover3
The MHEDA Journal - Fourth Quarter, 2017 - cover4
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