Community IT Innovators Nonprofit Technology Topics

October is ESOP Employee Owner Month with Johan Hammerstrom

• Community IT Innovators • Season 6 • Episode 43

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October is ESOP Employee Owner Month

An Employee Stock Ownership Plan, or ESOP, is a legal structure used in the U.S. to create an employee-owned company. Essentially, an ESOP is a type of retirement plan that invests primarily in company stock, holding the assets in a trust for the staff. 

Community IT is 100% employee-owned. This structure means our staff participates in the company’s success. Not all ESOPs are 100% employee-owned. Our CEO Johan Hammerstrom walks through the decisions and concerns of our founder, David Deal, that the mission of the company always remain focused on serving nonprofits with well-managed IT. The best way to preserve that mission when he sold the company in 2012 was to sell it entirely to the staff. 

Being an ESOP is fundamentally important to Community IT because it ensures we maintain the stability and focus required to serve the nonprofit sector best. This structure guarantees we control our own destiny, allowing us to prioritize long-term, excellent service to nonprofit organizations over external pressures like seeking to be acquired or maximizing short-term profits for outside owners. 

Further, it enhances our culture by aligning the incentives of our passionate employees with our mission, empowering independent decision-making and ensuring that clients benefit from a dedicated, resourceful, and stable team that is invested in the organization’s lasting success.

Join CEO Johan Hammerstrom as he explains what October being ESOP employee owner month means to Community IT, our clients, and our dedication to providing excellent outsourced IT services.

Interested in the ESOP structure advantages and how to become an ESOP? Contact Johan directly, he is always happy to talk about our ESOP.

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