NewAge® Industries Announces 100% Employee Ownership
Tubing manufacturer NewAge
Industries is now 100% owned by its employees through an ESOP (Employee Stock
Ownership Plan). The ESOP is a retirement benefit that gives employee-owners a
true stake in their futures. Ken Baker, CEO, sold portions of the business to
the ESOP in three stages over the past thirteen years. September 2019 saw the
completion of a decades-long plan to help ensure the continued success of the company
and avoid a competitive buyout.
Southampton, PA — At a company-wide meeting held September 5, 2019, it became official: NewAge Industries is now entirely owned by its employees through its ESOP (Employee Stock Ownership Plan). The event was the culmination of a plan first considered by CEO Ken Baker more than two decades ago.
"Many people have misconceptions about how an ESOP works. It doesn't cost the employees anything. It's overseen by a trustee, whose job it is to handle the ESOP's assets in the best interests of the employee-owners. The company receives tax benefits, which in turn benefits the ESOP. And, yes, the business owner can make a nice sum from the sale of the company's stock. Everybody wins," noted Baker.
Published by NewAge Industries Inc. on Dec 19, 2019