Spinnaker Coating, a manufacturer of adhesive coated papers and films, announced today that the company has become an S Corporation Employee Share Ownership Plan (ESOP), effective February 1, 2012. In the transaction, prior investors sold 100% of their ownership interest to a newly created Employee Stock Option Trust, allowing current and future employees to gain a beneficial ownership interest in the company without any personal investment.
Effectively, the ESOP is a qualified retirement plan which, based on company performance, could generate significant retirement benefits for Spinnaker's approximately 250 employee-owners.
“This transaction will give our employees a financial interest in the success of the business, making the positive bonds between Spinnaker teammates even stronger than they are today," says Louis A. Guzzetti, Jr., chairman and CEO of Spinnaker. "It represents a very tangible way to reward those who have played the critical role in Spinnaker’s success since we purchased the assets of our predecessor company out of bankruptcy in 2002. Today, we are a robust competitor in the pressure sensitive industry, based primarily on our customer-driven culture that places service at the top of our priority list. Delivering unparalleled service requires great employees who are focused and dedicated to the business at hand. That clearly describes our team, and we are thrilled to be able to provide this benefit to them.”
Guzzetti, who will continue in his current position, also says: “In light of the challenges facing American workers, an ESOP is an excellent way in which to assure the continuation of our world-class customer service model, help retain valued employees, and enhance our company’s productivity and profitability. We expect the ESOP to increase the retirement security of our employee-owners, particularly if we continue on the growth path we have enjoyed the last several years.”
“Throughout my career with Spinnaker, we have had more than our share of ups and downs," says Dan Potts, who has been with Spinnaker for 27 years. "In addition to periods of success, there were definitely times when my family and I were concerned about my job and our future - which I imagine is the way a lot of families in America feel today. With the creation of an ESOP, I know that all of us on the shop floor will feel confident that our jobs aren’t going to disappear. We look forward to becoming even more productive members of an organization that we know, by their actions not just words, truly values everyone who works at the company.”
According to Guzzetti, Q4 of 2008 saw a dramatic drop in sales for Spinnaker. Management turned to the employees and explained that, in order to stay afloat, the company needed to dramatically reduce expenses. "We took everyone, starting with me, and we took a 15% pay cut. It was very, very hard for a lot of people, but we've restored those salaries over a three-year period. I'm happy to say that we're going to have a salary increase in April for the first time in several years," he says.
Guzzetti adds: “We want to express appreciation to our friends and neighbors in Troy, which has been our home since 1928, and to affirm that we are committed to remaining and growing in a community that has been fertile ground for our business for so many years.”
For more information, visit www.spinps.com.