Find news and information for the executive corporate security director, CSO, facility manager and assets protection manager on issues of policy, products, incidents, risk management, threat assessments and preparedness.
Issue link: http://sdi.epubxp.com/i/738825
30 Security Dealer & Integrator / www.SecurityInfoWatch.com October 2016 J ust as the handoff from a quarterback to a running back requires a smooth transition, so too does the passing of the ownership of a security business. One answer to mak- ing the handoff from a closely held firm to employee ownership is via Employee Stock Ownership Plans (ESOPs). ESOPs are becoming increasingly viable in the security services industry; in fact, three major firms have already successfully enacted one — Pro-Tech Design and Low Voltage Contractors, both of Minneapolis, and Tech Sys- tems Inc., of Duluth, Ga. — each cre- ating a company that is 100-percent employee-owned. The Path to Employee Ownership Eva M. Mach's business title at Pro-Tec Design is President, CEO & Employee Employee Owned Cover Story Owner — and the "employee owner" part is the key to the success of any ESOP program. As of Feb. 1, 2016, Pro-Tec became a 100-percent employ- ee-owned company, and it is paying big dividends. Pro-Tec had considered various forms of employee ownership as an incentive plan and a way to reward high-performing members of its management team. At the same time, company owner Tom Hagen was thinking about his own exit strategy. "ESOP emerged as the option that would accomplish both and be broadly based," Mach says. e ultimate goal of the buy-out from Pro-Tec's long-term owner was to reward the people who helped him build the company with an ownership stake, preserve the company independence and build on his legacy. "From the company point of view, the transaction provided stability, continuity and empowered the employee owners to excel," Mach says. e situation was similar in 2014 at Tech Systems. Company owner Darryl Keeler wanted to find a way that he could eventually retire and transfer ownership to the employees while leaving the company, its clients and employees intact aer the transfer of ownership. "Tech Systems already fostered an ownership culture in that all employ- ees were empowered to do whatever was required to exceed our client's expectation," says Jerry Clark, Senior Vice President of Tech Systems. "Add- ing true ownership was a natural fit." Any ESOP program is fairly com- plicated, Clark says, so helping the employee-owners understand how an ESOP actually works has been chal- lenging. Tech Systems is an unusual ESOP because they included union employees in the plan. "Our effort now is to communicate effectively while keeping the information simple and straightforward," Clark adds. "We are seeing enthusiasm on the part of our employees and more of an ownership approach to how people do their jobs," Mach says. "We are able to leverage the employee ownership in How three security integration firms have taken advantage of ESOPs to put ownership of the business into the hands of the people who care about it most By Curt Harler and Proud