Building a Better Future Through Employee Ownership
Building a Better Future Through Employee Ownership
Success stories from Harold Beck & Sons, Inc. and The Walker Group, two employee-owned companies
For nearly nine decades, Harold Beck & Sons Inc. has sought to be a cornerstone of innovation and reliability in the field of electric actuators. Established in 1936 in Philadelphia with a mission to enhance industrial furnace temperatures, the company has since evolved into a global company, serving 70 countries across 14 industries. In 2021, after 85 years of family ownership, the company transitioned to being 100% employee-owned through an Employee Stock Ownership Plan (ESOP). This transformative move not only solidified the company’s values in its workforce but also catalyzed a wave of positive change.
In an interview on Valve Magazine with Doug Beck, the president of Harold Beck & Sons, Beck reflected on the transformative effects of transitioning to an employee stock ownership plan (ESOP). Beck discussed that the move to an ESOP had already brought about noticeable improvements, including increased growth, excitement, and engagement among employees. “Employees really start to feel like they own a piece of the company and become more enthusiastic,” Beck explained. Their transition to employee ownership not only marks a significant milestone in the long history of Harold Beck & Sons but also reflects their commitment to fostering a culture of shared ownership and empowerment among their employees.
The Walker Group is another employee-owned company, except they opted for a perpetual-purpose trust (PPT). Upon retirement, Kate Emery, founder of The Walker Group wanted to preserve the company’s values in addition to its value. The new ownership structure means the company is now owned by a trust without a direct human beneficiary, and it exists to fulfill a purpose. For The Walker Group, this includes donating a third of distributed profits to local nonprofits and sharing a third with employees.
As employee-owned entities, both companies are not only invested in their own success but also in the prosperity of their surrounding communities. By empowering their employees to have a stake in the company’s future, Harold Beck & Sons is contributing to the economic well-being of its local and global stakeholders. Similarly, The Walker Group’s adoption of a PPT highlights another innovative approach to employee ownership. By prioritizing the preservation of values and community impacts through charitable donations, they set the example for other businesses who are looking to align their ownership structures with their own core values.