Employee Owned Business

Exit strategies are a long-term goal for most business owners: they plan to retire and live on the proceeds from the sale or transfer of their business. Rick Roussin, founder of Coast to Coast Computer Products, had seen too many exit strategies devastate the business and the employees’ livelihoods. As a second chance company staffed with long-time, loyal employees, he felt his employees deserved a better outcome.

Employee Stock Ownership Plans

Rick learned about Employee Stock Ownership Plans (ESOP) and immediately saw this as the perfect way to secure the futures of his employees; by making the company 100% employee owned.

The IRS classifies an ESOP as a qualified benefit like a 401(K). Employees must own at least 30% of the outstanding shares to qualify as an ESOP. However, Rick wanted Coast to Coast to become 100% employee owned.

When the plan began, all employees received a proportional number of shares based on their compensation, and every employee with 10+ years of service was immediately fully vested. Every year since then, all full-time employees receive another proportional distribution of new shares, including forfeitures from unvested employees. After six (6) years, an employee is fully vested in the plan and thereafter can take 100% of their shares if they leave the company and roll it into another qualified benefit plan or pay the taxes and penalties if their departure is before retirement age.

Employees are automatically enrolled in the ESOP when hired, and Coast to Coast continues to offer their original 401(K).

Employee-owners meeting
Employee-owners enjoying a meeting

Ensuring Employees’ Economic Future

Rick steadfastly believes he must help others succeed and views securing his employees’ economic future as a perfect means to an end. And as an exit strategy, using the ESOP to convert Coast to Coast into an employee owned business avoided all the possible harm associated with a sale to another owner who would not know the culture and people for whom he would become responsible. With a culture of mutual support and a goal of helping people earn a comfortable livelihood, the ESOP became the perfect solution.

Transitioning to an Employee Owned Business

Rick’s advisors in establishing the ESOP recommended he take on a different role than the CEO. Choosing a new CEO allowed another individual to take over the reins while allowing Rick to be a stabilizing and motivating influence. As a result, Rick serves as the Chairman of the Board and focuses his energies on three of his passions: personal growth, training, and motivating. He chose 20+ year employee Glenda David to be his successor as CEO.

Join Coast to Coast

Loyalty, longevity, and livelihood – these three words summarize the opportunity Coast to Coast offers its employees. You provide a good attitude and a burning desire to succeed, and we’ll train you to earn a substantial livelihood for years to come in an environment that fosters loyalty throughout the organization. And, from your first day on the job, you become part of a 100% employee owned business.

If you are looking for an amazing place to work, we invite you to explore the career opportunities with Coast to Coast and start securing your future today. And if you’re interested in doing business with a company full of motivated, helpful and friendly people, contact us online or call (800) 223-8890.

YOUR ONE STOP SHOP

For all your Toner, Office Equipment and Office Supply Needs