By Kavita Sabharwal-Chomiuk
EllisDon has announced that on Feb. 28, a final agreement was executed under which 100 per cent of the company’s equity will be transferred to the company’s employees.
The Smith family shareholders, who, until recently, held 50 per cent ownership, have signed off on an agreement outlining that over time, the company will become entirely employee-owned. From March 1, EllisDon began gradually buying out the Smith’s stake in the company while the employees’ ownership will steadily increase to 100 per cent over several years.
The agreement is the result of negotiations led by the company’s Board of Directors chair, Gerald Slemko, the Smith family, and representation from EllisDon’s shareholder employees. EllisDon will continue to be governed by an independent Board of Directors, to whom the company’s management team, including CEO Geoff Smith will report to.
“EllisDon’s share structure and independent governance will ensure that we continue to strive together for complete fairness in equity of ownership across all employees, both present and future,” said Smith. “Shares will continue to be offered to employees every year and loans will still be offered on an interest-free basis. Shares will always be purchased and sold at book value, ensuring the ability of every employee shareholder to participate fully in the share value created while they are at EllisDon, and then to pass that opportunity on to future employees.”
The company notes that the buyout process could possibly be accelerated should the employees, Smiths and Board of Directors agree.