Ontario Construction News staff writer
March has ushered in big changes at EllisDon, after the Smith family signed an agreement to transfer 100 percent of the company’s equity to its employees.
The Smith family shareholders, who previously held 50 percent ownership, have agreed that, over time, EllisDon will become entirely employee owned.
And so, beginning March 1, EllisDon will gradually buy out the Smith’s entire stake in the company while the employees’ ownership will steadily increase to 100 per cent over several years.
“I don’t think I can overstate how momentous this agreement is in the life of EllisDon. It’s one of the most important days in our history,” said Geoff Smith, president and CEO at EllisDon. “I am very proud of everyone at EllisDon, past and present, for everything that has been accomplished over the past 69 years.”
The agreement is the result of negotiations led by EllisDon’s Board Chair Gerald Slemko, the Smith family, and representation from EllisDon’s shareholder employees. EllisDon will continue to be governed by an independent Board of Directors.
“EllisDon’s share structure and independent governance will ensure that we continue to strive together for complete fairness in equity of ownership across all employees, both present and future,” said Smith.
“Shares will continue to be offered to employees every year and loans will still be offered on an interest-free basis. Shares will always be purchased and sold at book value, ensuring the ability of every employee shareholder to participate fully in the share value created while they are at EllisDon, and then to pass that opportunity on to future employees.”
EllisDon, an employee-owned, $5 billion-a-year construction services company has grown exponentially beyond its modest origins in London with over 5,000 salaried and hourly employees across fifteen national and international offices.
The gradual buyout of the Smith shares, with an eventual goal of 100% employee-owned equity is intended to protect EllisDon’s ability to grow and continue its tradition of innovation and leadership in the construction industry.