George & Lynch rewards employees with 30 percent ownership stake

Delaware construction contractor George & Lynch is using a powerful tool to reward its employees, turning them into stakeholders, company President Chris Baker announced Dec. 22.

When the change is complete, employees will own 30 percent of George & Lynch.

“Like all excellent employees, our workers have other options, and we are grateful for their efforts and dedication that have made this company what it is today,” Baker said. “We hope that this ownership change both recognizes their hard work, and helps promote retention and improve recruitment.”

The transition to an employee stock ownership plan and the purchase of existing shareholders’ stock will occur over several years.

As existing shareholders approach retirement, they recognized a need to plan for the ownership transition, Baker said. The plan also provides an additional long-term retirement benefit and incentive to all eligible employees. Company management will not change; Baker and all existing employee-owners will continue to work in the business.

“I’m excited to become a part owner of the company that I have dedicated 41 years of my life to,” said Paige Lynch, a George & Lynch equipment manager. “It’s yet another example of how G&L gives back to their employees and cares about our future.”

Known for its highway and bridge work, new-home construction site work, underground utilities and paving work, 98-year-old George & Lynch is recognized by its green-and-yellow “GL” logo on its trucks and construction equipment across the Delmarva Peninsula. G&L is wholly owned by G&L Holdings Inc. along with other properties and investments. All employees of G&L are also employees of GLI.

G&L is headquartered in Dover and has facilities in both Milton and Gumboro. GLI also shares ownership of three hot mix asphalt manufacturing plants located in Sussex and Kent counties. The staff of nearly 200 employees provides services for various public and private customers across Delaware and Maryland’s Eastern Shore.

GLI engaged the assistance of Menke & Associates, the nation’s largest adviser specializing in ESOPs, to facilitate the plan and related transaction. About 22,000 companies have adopted ESOPs since 1974. Most are small – 80 percent have fewer than 200 employees and are privately owned, according to Menke.