Van Meter is celebrating 20 years of being 100% employee-owned. You might be familiar with employee-ownership as a retirement benefit—as that’s how most people understand it. To those fortunate enough to experience employee-ownership though, it is so much more.
We checked in with a few retired and tenured Van Meter employee-owners to get their take on what employee-ownership really means. Here are five things that stand out after 20 years of being 100% employee-owned.
1. BEING 100% EMPLOYEE-OWNED IS RARE
Of the ~35 million businesses in the United States, only 6,358 are employee-owned, and roughly a third of those are 100% employee-owned. What makes 100% employee-owned companies like Van Meter so unique? It takes a special set of circumstances to start an Employee Stock Ownership Plan (ESOP).
Former CEO Jim Hoke purchased Van Meter from his predecessor Dave Clark in 1981, not because he had the deepest pockets, but because he was the best person to lead the company. Clark chose Hoke, a sales leader, because he wanted the company to stay with the employees. Hoke never forgot that sentiment. He sold some of his shares to make the company employee-owned in 1996. After a few years of gradually selling a larger share, he sold the remainder of his shares to make Van Meter 100% employee-owned in 2005.
In a 2023 interview, Hoke said, “That was kind of a hard decision because Van Meter had always been my baby. Dave Clark gave me a tremendous opportunity, and I felt like I owed the employees who got us where we are today, to let them own a piece of it.”
Hoke’s selflessness and desire to pass ownership forward to the people who made Van Meter successful lives on. Current company leaders are committed to making sure future generations of employee-owners get to experience the same great benefit as today’s workers and that the company is positioned for sustainable, long-term growth.
2. THE VIBES ARE MAGICAL
In 2005, Van Meter became a 100 percent employee-owned company.
Was it a big deal when Van Meter became 100% employee-owned? Yes and no. People from every Van Meter location gathered in Cedar Rapids for a big celebration, and in the words of Van Meter’s Vice President of Finance, Tom Durian, they didn’t realize “there was some magic in a bottle that just got released.”
An ESOP is a retirement benefit where employee-owners earn shares in the company each year and grow their retirement fund based on the growth of the company’s value. Becoming 100% employee-owned changed the mindset of the people and the entire vibe around the company. Employee-owners began to see how their contributions created lasting value for the company and themselves. Therein lies the magic.
As former CEO Barry Boyer said, “When you show people how what they do impacts the company, and they know that how they do is how we do, then you start to get ideas that really change and shape who you are.”
3. ESOP EDUCATION FUELS GROWTH
The aha moment didn’t happen right away though. When Van Meter became partially employee-owned in 1996, the company assumed becoming owners would inspire employees to reach new heights. That was not the case at first. People understood what their ESOP balance was, but they didn’t grasp how and why it would grow into a meaningful benefit. That’s why Van Meter formed an Employee-Ownership Committee to educate employee-owners in 2001.
Once employee-owners understood how their actions affected the ESOP and how impactful it could be for their families, they were more inspired to create lasting value. Now, Van Meter offers CEO (Certified Employee-Owner) courses to help people understand how the ESOP works, and its Employee-Ownership Committee spans across the Midwest and throughout departments within the company.
Over the past 20 years, Van Meter’s employee-owners have gained a deep understanding and appreciation for employee-ownership, and it has led to significant share price growth.
4. EMPLOYEE-OWNERSHIP POWERS PARTNERSHIPS
Employee-ownership has fueled Van Meter’s growth, and it also benefits Van Meter’s customers and industry partners. Employee-owners are motivated to see their customer and supplier partners succeed because they have a vested interest in seeing Van Meter succeed.
The same could be said for the communities in which Van Meter is located. Serving communities by giving time and money to community organizations is a privilege. It ensures the company is successful because it powers the people who power Van Meter.
Durian compared it to taking care of a rental car versus one you own. Are you taking a rental car through the car wash? Probably not. But you will wash and maintain a car you own because you benefit from its longevity. Van Meter employee-owners are more motivated to maintain strong relationships because they benefit from long-lasting partnerships.
That mindset has been around longer than the ESOP though. Lura McBride, the current President and CEO of Van Meter, said, “As an employee-owned company, our whole purpose is to create lasting value for those we serve. Our servant leadership model and our service mindset has been a thread in our company for more than 95 years.”
5. RETIREMENT MAY BE CLOSER THAN PLANNED
Being a 100% employee-owned company has helped create a culture at Van Meter where some people want to stay at Van Meter for 40+ years. It has also created the opportunity for employee-owners to retire sooner than they would have otherwise.
Durian’s dad retired at 67. He’s planning on retiring in his early fifties. He knows he gets to move on to his next chapter sooner than if he worked somewhere else. He’s not a unique case either. People who joined Van Meter around the same time have retired as young as 50, and it has given them the chance to travel, discover new passions and of course – relax.
DISCOVER YOUR NEXT CAREER OPPORTUNITY
Would you like to own the company you work for? Are you looking to join one of the USA’s Top Workplaces? Visit our careers page to find an opportunity and own your future.