It’s called the endowment effect. Simply put, you care more about the things you own. And now, some employees in Allentown are having that same feeling.
After 36 years in business in Allentown, employees at Andesa Services received quite the gift to start the new year. All 165 employees now own 100% of the company.
“They will have a portion of the ultimate account and stock value of the organization,” said Mark Wilkin, the company’s CFO and business development executive.
It’s possible because of the Employee Stock Ownership Program. That’s a trust used to buy out the previous shareholders. Employees then get a portion of that trust. In this case, that portion was 100%, meaning the employees now own the company-all of it.
“If they have skin in the game and have a sense of ownership it will allow them to serve our clients better,” Wilkin said.
Once the debt of the purchase starts paying down, employees will start to see the fruit bear on their stock, which Andesa says offers a sense of pride.