STV Group has had an interesting history over the last 100 years. This morning at the Matheson Financial Advisors M&A Forum, STV CFO Peter Knipe talked about the firm's long journey to its current state as a 100% ESOP firm. One big takeaway for the AEC firm leaders at this breakfast keynote was that the 100%-funded ESOP option that the firm chose in 2001 was driven greatly by the fact that the public markets on which the firm traded historically typically don't understand nor appreciate AE firms. Knipe said that financing for the ESOP closed less than a month before the 9/11 terrorist attacks - if they'd been any later, it may have never happened.
The company's three major goals for the ESOP were clearly stated, Knipe said:
- Increase the value of the firm significantly
- Ensure that the ESOP is funded and maintained as a pension plan and capable of doing what it's supposed to do
- Focus on the employees and make sure it's a good place to work
Knipe said the value of the ESOP has increased every year, averaging 9% during its 10-year lifespan. He added that it is a vehicle that the employees have faith in to be a future benefit for everyone participating in it.
STV is #32 on the
ENR 500.
No comments:
Post a Comment