Charles River Analytics, a developer of intelligent systems solutions, becomes an employee-owned company, with the transfer of all outstanding stock to an employee stock ownership plan (ESOP). Dr. Greg Zacharias, President of Charles River, presented an overview of the transition to a 100% employee-owned company at an all hands mid-December meeting.
Dr. Zacharias said, “The ESOP makes very explicit our belief that the company’s success relies solely on the talent and commitment of our people, and their ability to control the destiny of the company over the long haul. By tying long-term individual ownership value to yearly company growth and profitability through successful teamwork, our people can be rewarded accordingly.”
The National Center for Employee Ownership (NCEO) reports that ESOP companies typically benefit both the company and employee. ESOP companies grow two to three percent faster per year in comparison to similar companies. Not only do ESOP employees have a voice in shaping the future of the company, they typically earn 5% to 10% more in base pay than employees in comparable positions and have three times the retirement assets.
“We feel that by maintaining private, employee ownership, we will maintain the freedom and flexibility we’ve had for the last thirty years, while allowing us to capitalize on the insight and contributions of individuals at all levels of the organization. This will only add to our ability to grow over the next thirty, and maintain the existing entrepreneurial culture we all so value,” Dr. Zacharias added. “And as an added benefit, employee ownership sends a strong signal to our customers about the importance of individual excellence, effective teamwork, and a dedication to getting the job done, now and for years to come.”