George & Lynch is proud to be an employee-owned company

Delaware construction contractor George & Lynch is using a powerful tool to reward its employees, turning them into stakeholders, company President Chris Baker announced Dec. 22, 2021.

When the change is complete, employees will own 30 percent of George & Lynch.

The transition to an employee stock ownership plan and the purchase of existing shareholders’ stock will occur over several years.

As existing shareholders approach retirement, they recognized a need to plan for the ownership transition, Baker said. The plan also provides an additional long-term retirement benefit and incentive to all eligible employees. Company management will not change; Baker and all existing employee-owners will continue to work in the business.

“Like all excellent employees, our workers have other options, and we are grateful for their efforts and dedication that have made this company what it is today,” George & Lynch President Chris Baker said. “We hope that this ownership change both recognizes their hard work, and helps promote retention and improve recruitment.”

FACTS

ESOP stands for Employee Stock Ownership Plan. ESPOs enable employees to acquire beneficial ownership in their Company without having to invest their own money.

Employees buy stock directly from the company using “after-tax” funds rather than pre-tax dollars.

A 2000 Rutgers study found that ESOP companies grow 2.3% to 2.4% faster after setting up their ESOP than would have been expected without it.

As of 2022, we at the National Center for Employee Ownership (NCEO) estimate there are roughly 6,500 employee stock ownership plans (ESOPs) covering almost 14 million participants.