ESOPs= Good for Texas
Paving the path for a better way of doing business through Employee Owned (ESOP) Companies
ESOPs= Good for Texas
Paving the path for a better way of doing business through Employee Owned (ESOP) Companies
Background
There are ~450-plus Texas companies with an ESOP with more than 100,000 participants (excluding things like large public companies).
Publix is a popular supermarket chain in the United States that was founded in 1930 by George W. Jenkins in Winter Haven, Florida. Jenkins began his career in the grocery business as a teenage errand boy for a local grocery store, and he worked his way up to become a store manager by the age of 17.
In 1930, Jenkins opened the first Publix store, which was called the "Food Palace."
Today, Publix is one of the largest supermarket chains in the United States, with over 1,200 stores across seven states in the southeastern part of the country. The company is an ESOP and it is known for its commitment to customer service and community involvement.
Publix is a perfect example of how ESOPs benefit everyone – Employers and Employees --- Equally!
Here are some comments by Publix employees/owners.
* "I have never worked for a company that takes care of its employees like Publix does. They truly value their associates and treat us like family." - Publix employee on Indeed
* "Publix is a great company to work for. They truly care about their employees and their well-being." - Publix employee on Glassdoor
* "I have been working at Publix for almost 20 years and I love it. They take care of their employees and always promote from within." - Publix employee on Reddit
* "Publix has the best benefits and compensation package out of any company I have ever worked for. They truly care about their employees and it shows." - Publix employee on LinkedIn
ESOPs work and work well for everyone.
We successfully inserted support for ESOPs in the 2022 Texas GOP Platform:
"PLANK 51: Employee Stock Ownership Plans (ESOPs): We support maximum economic opportunity for all citizens and believe that legal limits on employee ownership of Texas firms by Employee Stock Ownership Plan (ESOP) trusts must be eliminated. We also believe that changes in ownership from private individuals to a majority ownership by an ESOP must not create a disadvantage when doing business with the State of Texas or political subdivisions of the State. We believe the State of Texas should encourage the creation of more ESOPs by making information easily available to businesses located in Texas."
Support for ESOPs was added to the 2020 Texas GOP Platform: here.
"Republicans support maximum economic opportunity for all citizens and believe that legal limits on employee ownership of Texas firms by Employee Stock Ownership Plan (ESOP) trusts should be eliminated. We also believe that changes in ownership from private individuals to a majority ownership by an ESOP should not creative a disadvantage when doing business with the State of Texas or political subdivisions of the State. We believe the State of Texas should encourage the creation of more ESOPs by making information easily available to businesses located in Texas."
What H.B. 2389 & S.B. 1233 Does
*The bills allow a professional corporation to organize as ESOPS as long as ALL of the voting trustees are licensed.
*The bill establishes the Employee Ownership Assistance Website to maintain companies' information to increase awareness of ESOPs and to provide technical assistance to determine feasibility for a company to establish itself as a ESOP.
*The bill allows certified HUBs to transition to an ESOP structure without forfeiting HUB status.
*The bill allows contracting preferences for ESOPs for the state, cities, counties, and special districts.
Both political sides embrace ESOPs
Democrat President Barack Obama
Republican President Ronald Reagan
Republican President Ronald Reagan
"The idea behind these ESOPs is that if employees have a piece of the action—they’re essentially shareholders in these companies—then you are aligning the interests of workers with the interests of the company as a whole. It’s something that can help grow companies, because the workers feel like they’re working for themselves, and they’re
"The idea behind these ESOPs is that if employees have a piece of the action—they’re essentially shareholders in these companies—then you are aligning the interests of workers with the interests of the company as a whole. It’s something that can help grow companies, because the workers feel like they’re working for themselves, and they’re putting more of themselves into their job each and every day. I think that it’s something that can be encouraged."
Republican President Ronald Reagan
Republican President Ronald Reagan
Republican President Ronald Reagan
"I can’t help but believe that in the future we will see in the United States and throughout the western world an increasing trend toward the next logical step, employee ownership. It is a path that benefits a free people."
Testimonals
Corey Rosen
Michael Keeling
Anne Davison
Founder, National Center for Employee Ownership
"The next step to grow employee ownership in the U.S. needs to be at the state level. This initiative is a good first step for Texas to become a leader in that effort."
Anne Davison
Michael Keeling
Anne Davison
President, RFD & Associates, Inc.
"RFD has been a successful woman-owned IT Sales & Services business in Austin for over 30 years. Our primary client is The State of Texas. Recently, RFD converted part of the business to an ESOP benefiting our employees, many of whom have been with RFD for decades. We will eventually transition to bein
President, RFD & Associates, Inc.
"RFD has been a successful woman-owned IT Sales & Services business in Austin for over 30 years. Our primary client is The State of Texas. Recently, RFD converted part of the business to an ESOP benefiting our employees, many of whom have been with RFD for decades. We will eventually transition to being fully employee owned (full ESOP). Retaining our HUB status will allow RFD to continue to serve our Texas clients as we have always done."
Michael Keeling
Michael Keeling
Michael Keeling
Former President, The ESOP Association
"While many states have enacted laws providing incentives for ESOP creation and operation, [if this bill] became the law of Texas, it would set a precedent for similar preference in other state laws, and perhaps the Federal 8(a) program. Since Texas' Constitution provides that the Legislature meet reg
Former President, The ESOP Association
"While many states have enacted laws providing incentives for ESOP creation and operation, [if this bill] became the law of Texas, it would set a precedent for similar preference in other state laws, and perhaps the Federal 8(a) program. Since Texas' Constitution provides that the Legislature meet regularly only once every two years, with each session ending in the May timeframe, the possibility of having the law changed is two years in the future unless the Legislature takes action this session. Mike Hart, Founder & Chairman of EEA Consulting Engineers is leading a grassroots Texas effort to have the Texas law amended."
How you can help
Sign the belief statement
Sign the belief statement
Sign the belief statement
Join other Texas ESOPs in supporting our legislation by signing the Belief Statement below in the "Join our Cause" section. We'd like to increase our coalition of ESOPs.
Invest in the cause
Sign the belief statement
Sign the belief statement
To ensure victory in the legislature, support our efforts. Contact Mike Hart at MikeHart@eeace.com or 512-744-4400 for details on how to send funds and be a part of this great cause.
Contact your legislators
Sign the belief statement
Contact your legislators
Call, email, and meet your state senator and house representative to express your support for our legislation and to ask for their support in co-sponsoring it and in voting for it. Find out who represents you here.
Share with others
Volunteer to testify at hearing
Contact your legislators
We need your help to spread awareness of this initiative to your fellow employees and other Texas ESOP companies. Check out what the National Center for Employee Ownership wrote here about our efforts.
Volunteer to testify at hearing
Volunteer to testify at hearing
Volunteer to testify at hearing
We're looking for volunteers to testify at the future hearings about how ESOPs work and why this bill is good for business. If interested contact MikeHart@eeace.com
Leadership
Mike Hart
Jack Moriarty
Jack Moriarty
Founder, Texas ESOP Initiative
As Chairman of the Board and former president at EEA Consulting Engineers, Mike has been with the company since he founded it in 1977. EEA has been an ESOP since 2015 specializing in traditional facility design and remodeling, to commissioning, and energy conservation projects worldwide with licenses in all 50 states and the District of Columbia.
Jack Moriarty
Jack Moriarty
Jack Moriarty
Advisor, Texas ESOP Initiative
Jack Moriarty is the Founder and Executive Director of Ownership America, a think tank building the next generation ownership society. Ownership America is creating a movement for broad participation in ownership through policy development and organizing coalitions of grassroots advocates and across the country.
Thomas Dudley
Jack Moriarty
Thomas Dudley
Advisor, Texas ESOP Initiative
As CEO of Certified EO, Thomas is a passionate advocate for employee-owned companies leading recruitment for Certified EO and working closely with members. Thomas co-founded Certified EO while working on a PhD in Organizational Behavior at the Stanford Graduate School of Business.
Team
Jeff Heckler
Matt Mackowiak
Jeff Heckler
Primary Lobbyist, Texas ESOP Initiative
As founder of Texas Solutions Group in 1993 and sold into Schlueter Group where he serves as Principal, Jeff brings his prior experience as Chief of Staff to a Texas Senator and leverages relationships to accomplish goals. He serves on the Board of Directors for the Texas Association of Business and
Primary Lobbyist, Texas ESOP Initiative
As founder of Texas Solutions Group in 1993 and sold into Schlueter Group where he serves as Principal, Jeff brings his prior experience as Chief of Staff to a Texas Senator and leverages relationships to accomplish goals. He serves on the Board of Directors for the Texas Association of Business and The Austin Club as well as serves on the City of Austin's Solid Waste Advisory Committee.
Lauren Day
Matt Mackowiak
Jeff Heckler
Marketing Director, Texas ESOP Initiative
President at GoodBuzz Solutions, Lauren harnesses the best of marketing, communications, and events to empower the brands of entrepreneurs, public figures, and organizational leaders to become more visible so they can achieve their goals and be the best.
Matt Mackowiak
Matt Mackowiak
Matt Mackowiak
Political Director, Texas ESOP Initiative
As president of Potomac Strategy Group, Matt provides political consulting to campaigns and media relations/crisis communications assistance to companies, groups and individuals. He's served two U.S. Senators and a Governor, in the Bush administration, and in winning campaigns.