NEW ULM, Minn. — In its ongoing quest to attract and retain quality drivers, one US trucking firm has decided to hand ownership of the company over to its employees.
J&R Schugel, which operates 600 power units and more than 1,000 trailers, has announced it is transferring ownership of the company to its drivers and employees.
On Nov. 7, president Rick Schugel announced a new employee stock ownership plan affective Jan. 1. He said the company’s employees will represent the fourth generation of owners. He also said he turned down offers from outside interests, preferring instead to make employees the next owners.
The company is being converted to a 100% ESOP (employee stock ownership plan) model.
“The success of the company depends, in large part, upon the efforts of its employees,” says Schugel. “J&R Schugel, along with the previous vested owners are delighted the employees will be afforded the opportunity to share in the new ownership and the fourth generation.”
Current employees are eligible to participate as of Jan. 1, 2015 while new hires will have to go through a waiting period before qualifying.
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