While employee ownership is available in several modes (such as ESOP), Tallgrass offers the EOT model.
The family-owned Davey Tree Expert Company transitioned in 1979 following a hybrid model of employee ownership: first, via an Employee Stock Ownership Plan (ESOP); and second, through a direct purchase of an employee group.
Background
In 1880, John Davey founded The Davey Tree Expert Company on the basis of his research and practical applications of tree surgery. John believed the health of a tree, like that of a human being, could be maintained through scientific means. His 1901 publication “The Tree Doctor” would help give rise to the modern-day industry of arboriculture and cemented his legacy as “The Father of Tree Surgery.” The Davey Institute of Tree Surgery opened in 1908 and John remained active, serving as president until his death in 1923 at the age of 77.
Davey is the oldest and largest tree care company in North America, providing services to homeowners, small and large businesses, public utilities, and local, state, and federal agencies through its arboriculture, horticulture, and environmental and consulting services.
Transition to Employee Ownership
Employee ownership was a rare occurrence in 1979 when it was first proposed to the Davey family. The future of Davey Tree hung in the balance when the Davey family and heirs voted to sell the company in 1977.
Jack Joy, a WWII veteran, started his career at Davey picking up branches from downed trees, eventually working his way up to CEO over his 30-year tenure. It was Jack that that would lay the groundwork and convince the Davey family to sell to their employees in 1979. The hybrid solution saw 400 employees participating in the ESOP (Employee Stock Ownership Plan).
Sales for the company grew at a rapid pace, quickly doubling the $60 million in annual sales at the time of the employee acquisition. The number of employees was 2,800 in 1979. In the 2020s, it now stands at more than 7,000.
By electing to build a new company headquarters on North Mantua Street in Kent, OH shortly after its becoming employee-owned, Joy and his team allayed fears that different ownership might cause Davey Tree to relocate elsewhere. The company’s presence in Kent continues to provide opportunities for the thousands of employees who work there.
Today Davey is the 8th largest employee-owned company in the United States with over 2,500 employees enrolled in the stock purchase plan.
Employee ownership was a rare occurrence in 1979 when it was first proposed to the Davey family.
