(TAMPA, Fla.) — Making employees part owners of the company has been a huge success at Hendry Marine Industries Inc. (HMI). It’s a lesson many companies can learn from, according to HMI’s CEO Jim Long.
“While I have always felt it’s important to engage our employees in growing our business, it is really motivational when everyone shares in the benefit,” said Long. “Our people are embracing their roles in driving value through sustainable growth and continuous improvement and then seeing the impact in their employee stock ownership plan (ESOP) account balances.”
HMI is showcasing the success of its ESOP at its headquarters in Tampa on July 26. The event, which the company will hold annually going forward, will bring company employees together to review progress, raise awareness and understanding of the ESOP, and provide a forum for the employees to discuss the future of the company.
HMI established the ESOP in 2015, making HMI a 49 percent employee-owned company. For HMI, it was the perfect succession plan: The employee owners were willing buyers and the former owner, the Hendry family, was pleased to share the wealth with the employees who worked so hard to make the company successful.
The ESOP has had an overwhelmingly positive effect on the company, creating broad-based ownership among all employees and fostering an environment in which everyone understands his or her role in helping the company achieve its bottom line. Research has proven that employee ownership builds successful, competitive companies, and creates equitable wealth for employees. It has been shown that ESOP companies pay better benefits, have twice the retirement income for employees, and pay higher wages than non-ESOP companies.
Employee ownership facts:
• There are approximately 10,000 ESOPs in place in the U.S., covering 10 million employees.
• Total assets owned by U.S. ESOPs are estimated to be $869 billion.
• The Economic Performance Survey conducted by the Employee Ownership Foundation in 2014 found that 70 percent indicated revenue increased; 30 percent indicated revenue decreased; 64 percent indicated profitability increased; 36 percent indicated profitability decreased; 64 percent of companies have created an ESOP education program or ESOP advisory committee since establishing the ESOP.
Hendry Marine Industries, along with its affiliated companies, offers a range of maritime services, including commercial and government ship repair, dry-dock construction, steel fabrication, stevedoring and marine terminal operations, marine environmental services, and maritime employee staffing.