A Democratic ESOP or Co-op/ESOP
OANB CASE STUDY CATEGORIES:
Owner Led: Co-op oriented business owner used ESOP for tax benefits and provided one vote per person
Employee Stock Ownership Plan Companies (ESOP): S-Corp, leveraged ESOP has provided maximum tax benefits providing cash for fast growth
Effective Employee Participation (Participative Workplace): Created system to include employees in 75 types of company decisions
Effective Workplace Democracy (Workplace Democracy): 1 vote per person on shareholder issues including board election
Once Again Nut Butter (OANB) is a 100% employee-owned food manufacturing company with 80 employee-owners, an employee stock ownership plan (ESOP), and annual revenue of $50 million, founded in 1976. Located in rural Nunda, New York, they make nut and seed butters that are sold in stores throughout the United States. Between 2011 and 2014, the company saw double-digit growth in annual revenue, sometimes growing as much as 40% annually. In that same time period, the number of employees doubled from 30 to 60. OANB supports small farms and co-ops in Nicaragua that supply it with nuts. Due to its 1-vote-per-person voting and participatory management system it is sometimes referred to as a hybrid co-op/ESOP.
Deborah Groban Olson joined the OANB Board of Directors in 2011, became its board chair in 2014 and has since served in that role. She facilitated its Governance Committee, which, over the course of 3 years, created a Decision Making System (DMS) codifying employee participation in 75 different types of decisions.
History
1976: Once Again was founded by Jeremy Thaler and Constance Potter.
1981: Once Again purchased and renovated a turn-of-the-century silk production facility in Nunda, New York. “Rocky” was one of four baby raccoons found living on the property and became the company mascot and logo
1989: Once Again is the first company in the nation to introduce organic Valencia peanut butter.
2004: An additional 27,000 square foot, state-of-the-art production facility was opened.
2006: Once Again became 100% employee-Owned.
2011: Once Again became one of the first Certified Fair Labor companies in the country.
2013: Purchased the conference center and built a state-of-the-art Quality Assurance Lab.
2016: New 40,000 square foot peanut butter facility built and opened
Democratically Managed
The employee-owners meet on a regular basis. All employee-owners have voting rights. Each person gets one vote. Monthly company meetings are held to address company policies, operational issues, and financial strategies. Committees are formed to help direct company initiatives or resolve employee concerns, which could ultimately be subject to a final company vote (1 person = 1 vote). In addition, employees have their voice heard through Board elections. In fact, OANB has at least three employee-owners sitting on its Board of Directors. It has three outside directors and Its bylaws provide that there will never be more outside than inside directors.
Fair Compensation
The income that is generated at OANB is distributed fairly. For example, it currently observes a 4:1 compensation ratio of highest to lowest paid employees. Profit-sharing bonuses are distributed equally to all owners too.
Integrity
OANB does not have a hierarchical structure. The supply chain is flatter, and streamlined in the way that commodities are grown, purchased, and distributed. Products are produced with a higher level of integrity because all share ownership and we take pride in what they are producing. Their motto is “We spread integrity.”
Fair Trade
OANB’s employee-owners care a great deal about its growers and that they make a fair wage, so they engage in Honest in Trade practices. They work with co-ops in developing countries, helping to address issues of economic crisis and poverty. They also engage in domestic fair trade practices supporting small and rural farms, making sure that beekeepers receive a fair price for honey.
This link is to a case study explaining in more detail how the participatory OANB Decision Making System was developed, its impact and how it used Sociocratic methods. (Julie here we need a link to Sheella Meirson’s website https://sociocracyconsulting.com/wp-content/uploads/Case-Study-of-OANB.pdf.
Testimonials
From Cate Kemp, Employee Owner Board Member
“Deb, you were serving on the Board of OANB when I started working here in 2013. I joined the Production team … and within a few years, I became Receptionist, a member of the Governance Committee and then an Internal Board Member.
You were welcoming right from the start up of the Governance Committee. I admired your guidance and ability to thoroughly engage all meeting attendees. Your ESOP knowledge and experience is second to none. As Board Chair, you have seen many changes and been faced with many challenges and you have been successful at handling them all with authority and grace.
Thank you for being a guiding force for so many years. Your hard work and dedication are very much appreciated. “
From Jim Stenger, Outside Board Member
“Deb and I worked together on a board of an ESOP company. As Chairperson of the Board she was instrumental in developing a decision making system that brought clarity and a positive change in the culture. As a leader she always made sure all participants in board and committee meetings had the opportunity to contribute their thoughts in a non-threatening way. She was always asking questions to make sure she understood the discussion topic and drew good conclusions and/or thought provoking comments. She was always available to any employee, management or board person by phone or in person. Her knowledge of ESOP law is outstanding. I could always consult with her if I had a question and she would have the answer or get me an answer very quickly. A great resource.
