October is Employee Ownership Month, a month-long recognition of the benefits that employee-owned organizations, particularly Employee Stock Ownership Plans (ESOPs), provide to their employees and communities.
Photo courtesy of Lewis Services. Photo is of Lewis Services CEO, Leslie Kass, and President & COO, Dennis Brown, meeting with crews in CT.
Understanding ESOPs
Fifty years ago, in 1974, Congress created the framework for Employee Stock Ownership Plans (ESOPs) to help promote wealth distribution among traditionally marginalized groups. According to the National Center for Employee Ownership (NCEO), ESOPs are the primary model for employee-ownership in the U.S. These plans allow employees to acquire shares of their company, providing a stake in its success and a retirement benefit.
How ESOPs work
ESOPs are qualified, defined contribution plans that provide a company’s employees with the opportunity to accumulate their employer’s stock as part of their retirement plans.
In most ESOPs, the company buys shares on behalf of its employees.
ESOPs provide an alternative option to those who might struggle with typical payroll deductions, like a 401(k), aimed at retirement income.
Lewis Services: A model of employee ownership
Lewis Services is one of North America’s largest vegetation management companies. Founded in 1938, the company became an ESOP in 1998. Today, they are one of the largest 100% employee-owned companies in the U.S. and have a majority-minority workforce. The company’s values and commitment to each employee’s success made the move to an ESOP structure a natural fit. The change has been a win-win for Lewis Services and its employee-owners. The company has seen an ongoing rise in employee engagement since making the switch. In turn, the change to an ESOP has empowered employees to help create a healthier—and more inclusive—environment for employees. With more than 4,000 employees across 27 states and a large and diverse customer base, Lewis Services continues breaking down barriers and maintains its reputation as an inclusive and thriving organization.
Educating employees about the value of ESOP is a year-round activity. Through messaging campaigns, financial seminars, video tutorials, and employee testimonials, Lewis Services educates its employees—both new and seasoned—about the benefits of the ESOP structure, and is committed to helping its employees build strong financial futures for themselves and their loved ones.
Lewis Services also invests in its employees through programs like the Leadership in Action (opens a new window) initiative, which promotes leadership development across all levels. This initiative, alongside the efforts of a dedicated Director of Diversity, Equity, and Inclusion (DEI), reinforces the company’s commitment to fostering an inclusive environment.
“Our continued success and growth start with our people,” said Leslie Kass, CEO at Lewis Services. “We work to respect and appreciate the various perspectives among all employees and lean into those differences to create an environment where everyone feels valued.”
Ongoing success through strategic partnership
In 2020, thanks to that ongoing success and growth, Lewis Services found itself on the hunt for a new insurance brokerage. Thanks to its expertise in supporting ESOPs, Lockton was the broker of choice. The complexity of ESOP ownership structures means having the right insurance program is critical. Lockton provides tailored alternative risk finance solutions that align with the long-term growth objectives of employee-owned companies. Lockton has established itself as a thought leader in the ESOP space, as well, with plans to host a conference in June 2025 aimed at ESOP CFOs. Additionally, Lockton is a national sponsor of the Employee-owned S Corporations of America (ESCA), which boasts more than 250,000 employee-owner members across the US. Quinn Damon, Senior Vice President and Producer with Lockton’s Founders Series, highlights the shared values between the broker and ESOPs. Lockton is privately held, invests heavily in its people and communities and, like an ESOP, has different long-term goals than its competitors. “Being independent, we pair well with ESOPs both culturally and strategically,” said Damon. “We both have to evolve and grow in similar ways." As we celebrate Employee Ownership Month, Lewis Services continues to demonstrate how an emphasis on inclusion and employee development not only empowers employees but also impacts local communities. “Because we’re an ESOP, everyone has a stake in making Lewis the best it can be,” said Kass. “We empower every employee and recognize they can all make a difference.”
For more information, please visit https://www.lewisservices.com (opens a new window)