The Freeport-based general contractor Warren Construction Group is transitioning to employee ownership through an employee stock ownership plan, or ESOP.
The ESOP was implemented July 1 to ensure an orderly and tax-efficient transition of ownership from founder Peter Warren to the company’s roughly 40 employees, it said. An ESOP is a type of employee-benefit plan in which employees receive an increasing number of shares in the company over time.
Company spokesman Gavin Pond said Warren Construction eventually will become completely employee-owned, but that certain variables made it impossible to say exactly when that would happen.
Warren Construction will continue to be managed by Warren, who is chairman and CEO. Warren said in a news release that the increased employee engagement and financial stability associated with an ESOP will allow the company to continue meeting the highest standards of performance and quality.
Warren said he worked with Susan Scherbel of Belleview Associates to implement an ESOP plan that would ensure the future of the company.
“While Peter’s (ESOP) transaction is small, relative to the various construction deals done to date, the close-knit and familial cohesion of this group made it a really nice fit,” Scherbel said in the release. “Once Peter became convinced that this was the optimal structure for his operation, he wouldn’t take ‘no’ for an answer.”
Founded in 1999, Warren Construction specializes in both residential and commercial projects. Warren said the company has a loyal and highly skilled team of devoted employees.
Another local construction company, Landry/French in Scarborough, announced it had converted to an ESOP in May.
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