In the midst of celebrating its 50th anniversary, Madison Global announced the transition to an employee stock ownership plan (ESOP).
The company’s founder, Werner Haase, and CEO and President, Alex Alaminos, recently announced at an annual employee gathering the completion of the ESOP plan to further their commitment to their employees and customers. Establishing the ESOP set in motion a strategy to sustain intact the company’s rich tradition of superior service and quality for many years to come. Madison shareholders will regularly contribute to the ESOP, releasing their stock into employee retirement accounts over time. No change in management structure will take place as a result of the new ESOP plan.
“Over the last five decades, we have built a formidable organization thanks to our loyal, dedicated employees and customers. This dedication is being recognized by Madison Global and, more importantly, our clients,” says Alex Alaminos. “An ESOP is a great way to enhance benefits for our valued employees and translate this employee satisfaction into service levels which meet and exceed our sophisticated customers’ expectations.”
In 1974, Werner Haase started Madison as an incentive company, followed a few years later in 1996 by the industry’s first web-based recognition program. Madison has evolved through consistent organic and new client growth from a starter incentive company in the 1970s to a leading global social employee recognition and incentive company.
The Employee Stock Ownership Plan (ESOP) is a retirement benefit that enables employees to earn shares of stock in the company where they work. First created in 1974, there are approximately 6,700 ESOP businesses in the United States, employing about 14 million employee-owners. At Madison Global, the ESOP benefit is being provided in addition to other benefits. According to research compiled by the National Center for Employee Ownership (NCEO), ESOP-owned companies tend to outperform comparable firms in their industry and show more resilience in recessions. Employees in firms with an ESOP have 2.2 times as much in retirement savings compared to employees in non-ESOP companies.