The Newberry Group (St. Charles, MO)
We previously discussed how a global IT consulting firm sold their company to an ESOP as part of a Strategy for Continued Growth and Contributing to the Economic and Philanthropic Development of the Community. Some additional reasons why Newberry sold to an ESOP are examined in Newberry hands off company to employees: A look toward long-term viability:
- To Provide a Succession Planning Solution
"Founders can't act as though they're going to live forever," Brenda Newberry, the company's chairman and chief executive officer, said of the decision to shift ownership to employees. She says the move is about the future of the company - not next quarter, but once she and husband Maurice, the company's president and chief operating officer, leave the business (which, by the way, she says is not in their immediate plans). - To Empower Employees to Be More Responsible
Some Newberry associates say they expect their partial ownership to change their habits at work.
"I think it does change mind-sets," said Richard Berry, a senior computer systems analyst in Newberry's security practice. "I believe people are just a little more responsible about wastefulness and thinking about the future of the company when they have this direct stake." - To Improve Recruiting
A veteran of corporate security practices who came to Newberry from information technology stalwart EDS, Berry expects employee ownership to help the company's future recruiting efforts, as well. "I believe that for recruiting top-notch people, it gives us an edge," Berry said. - To Create an Additional Selling Point to Customers
He also thinks it's a selling point, giving potential clients the assurance that Newberry's employees are committed to the job at hand.
- To Improve the Bottom Line
Because the company is entirely employee-owned, Newberry is a tax-exempt entity. That, Maurice Newberry says, gives the company additional capital to grow.
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