Owatonna Business Announces New Owners: Its Employees
Metro Sales Inc. in Owatonna's parent company Metro Sales Inc. of Richfield recently announced after 50 years in business in 2019 that it will be having new ownership. It's employees. According to the Minneapolis/St. Paul Business Journal the Employee Stock Ownership Program, ESOP, will be retroactive to the beginning of the year.
So how do ESOPs work? According to the National Center for Employee Ownership:
"Employees can buy stock directly, be given it as a bonus, can receive stock options, or obtain stock through a profit sharing plan. Some employees become owners through worker cooperatives where everyone has an equal vote. But by far the most common form of employee ownership in the U.S. is the ESOP, or employee stock ownership plan. Almost unknown until 1974, ESOPs are now widespread; as of the most recent data, 6,669 plans exist, covering 14.4 million people." - National Center for Employee Ownership
Some examples of ESOP businesses you might be familiar with are Scheels, Hy-Vee, and Innovance Inc.
Metro Sales Inc. has not set a price for the company stock for employees to purchase yet.