I have great and exciting news to share. Phacil has become an employee-owned company.
On December 28, 2016 our founders sold their shares in Phacil, Inc. to the “Phacil Employee Stock Ownership Trust.” Beginning in 2017, a new benefit program called the “Phacil Employee Stock Ownership Plan” (“ESOP”) will become available to employees.
The ESOP is considered a retirement benefit plan designed to provide Phacilians with an ownership stake in the Company. It is a long-term plan, which rewards Phacilians for remaining with the Company and growing it over time. Our ESOP will be similar in many ways to other long-term retirement plans, and is governed by the same laws and regulations, the Employee Retirement Income Security Act (“ERISA”). The ESOP will be funded by Phacil and requires no contribution from employees. Shares of stock will be held in the Trust and vest over time. The value of the shares will grow as the value of the Company grows, and may decrease if the value of the Company decreases. Employee shares will be held in the Trust until retirement and/or upon leaving the Company. The longer employees remain with Phacil, the longer they will be able to create value for themselves and their families.
Today, over 9,000 successful companies across the United States are substantially or entirely owned by their employees. Employee-owned companies are in every state and every industry, ranging in size from the giant Publix supermarket chain to small engineering firms. The ESOP success formula is simple: Employee-owners make great employees. Employee-owners know that their efforts can help them gain a benefit that is potentially greater than just their salary. Studies have also shown that companies with ESOPs are generally more profitable and productive than those without them. Learn more about ESOPs at www.esopinfo.org.
Becoming an employee-owned company will not change Phacil’s day-to-day operations or management. Mark Cabrey, Mehdi Cherqaoui, myself, and the rest of the senior management team will continue to run the Company. With the ESOP, Phacil remains the same. The primary difference is that the Company stock is now held by an employee trust, instead of being held by our former owners.
This is a very exciting time and opportunity for all Phacilians. It is time now for Phacil to begin a new journey. As business owners, all Phacilians will share directly in the responsibilities and results of our growing Company. And as we have in the past, we are counting on each other to always provide – Excellence in Service, Excellence in Execution, and Excellence in Everything we do. Consistently doing this will be our lasting contribution to ourselves, our Company, our families, our country, and something we can all take pride in.