Alloy Engineering: A True Employee Owned Company

May is an important month for Alloy’s employees, or should I say shareholders.  The Alloy Engineering Company is an ESOP organization. In fact it’s the first one authorized in the State of Ohio back in 1974, and one of the original ESOPs in the United States.   For those not familiar with the program, ESOP stands for Employee Stock Ownership Plan.  More unique is the fact that Alloy’s ESOP plan is, and always has been, non-leveraged.  Alloy Engineering’s founder and past chairman wanted the Company to share ownership with its employees, and has created a culture that has been ongoing since 1974.  Starting with a unique stock bonus plan, the plan evolved all the way to fully-funded 100% ownership as of 2001 and continues today.  The program is fully Company sponsored, in that each employee receives shares of the Company with no money out of his or her pocket.  Each year, after a thorough audit, the Board of Directors of the company determines the percentage of profits that will be assigned to be distributed to the employees in the form of Company shares.  Imagine the excitement when the employee is presented with his annual statement!  Not unlike the stock market, these shares can fluctuate in value from year to year depending on the appraised value of the Company.  Recently the values are up, which is advantageous for both the Company and the employees.  Near or at retirement, or if leaving the Company the employee has several options related to cashing in their shares.

What does this mean to our Customers?  Needless to say, each shareholder, as an employee, has the incentive to work hard, and if that’s not enough, peer pressure can be very motivational.   Order fulfillment becomes a team effort, with all employees working together to ensure the Customers’ needs are satisfied.   Sometimes this means working overtime to get out the shipment, not a problem.  Quality is improved because each employee realizes that product rejection and rework will have a negative impact on his share value.  These are all key factors in obtaining and maintaining our Customers.  Alloy Engineering represents what a true employee owned Company can do for you and your company.