When we created our GESOP (Gibson Employee Stock Ownership Plan) at the end of 2010, we had several goals in mind:
-
Create better alignment and focus throughout our firm.
-
Have a unique ability to provide for the financial well-being for all our teammates.
-
Ensure our agency’s independence. In our business, we call it the “p” word – perpetuation.
Remaining independent has always been important to us at Gibson. We have always been employee owned – in fact, one of my first tasks back when I started in 2000 was to facilitate the perpetuation of Dave Gibson’s ownership to other employee-buyers within our firm. Internally perpetuating the business, buying and selling of our shares to employees, has been a constant over the past 13 years. We could have kept on doing what we were – but in 2010 we were looking for a game changer. The GESOP was just what we were looking for as it created solutions to all of the goals listed above.
The fact that we have the GESOP and several Sub S owners gives us truly the best of both worlds. The financial and cash flow benefits of the GESOP will allow us to pay off the stock acquisition debt on an accelerated basis, as compared to the same scenario outside an ESOP.
Things could have been different. We could have sold the firm externally for a nice payday. But we have a long history over the past 80 years of having our owners be more concerned about the long haul - of being a sustainable firm for the benefit of our clients and our employees. We are proud of our legacy of independence, and that we will be around far into the future to protect what matters most.
The GESOP is a great tool to facilitate perpetuation of smaller, privately owned firms like our agency. I’m also not saying that an ESOP is right for every situation, but it sure was for ours. If you’re wondering how to preserve the legacy of your company through employee ownership, I’d recommend seriously looking at an ESO
P.
