Download our Newsletter: Newsletter – Fall 2017
From the CEO
October was ESOP Employee Ownership Month, and Bobbitt is celebrating its 30th year as an ESOP. Under this program, employees share in the company’s overall success with Bobbitt’s Board of Directors making an annual contribution to the ESOP. Annual contributions are then allocated to individual accounts within the ESOP trust fund. Employees become 100% vested in six years. When an employee retires, Bobbitt buys back the stock at its fair market value.
This model has worked very well for Bobbitt, and it continues to be appreciated by employees. Over the past 30 years, the program has resulted in millions of dollars paid out to former ESOP participants. This additional level of retirement funding is not available to most companies in the design and construction industry.
Bobbitt’s ESOP is a cornerstone of our beliefs and actions as a company. Employees owe it to one another to give 100% every day and to hold each other accountable. With an ownership stake in the company, all Bobbitt employees are pulling for the same success, no matter their role.
We can credit my predecessors for having a vision for how employee ownership would shape the culture of Bobbitt and empower our people to contribute their talents to the fullest potential. This approach has also enabled us to maintain our strong financial stability through leadership changes. The ESOP provides for long-term succession planning, so the company is not sold from one owner to another when a CEO retires. Instead, we are able to transition seamlessly. I took the helm when Glenn Adams became our Board Chairman in 2001, and now I work with Jim Bell, Ben Wilson and Josh Menold as their leadership roles increase. Bobbitt’s ownership continuity is never in question, so employees and customers can be confident in our ability to stay focused on quality, service and innovation.
Employee-owners truly set Bobbitt apart, because they personally take pride in a job well done for our customers. We dedicated this issue of BQuarterly to celebrating that spirit of employee ownership.