Pacific States Petroleum is proud to announce that we have become a 100% employee-owned company with the launch of our Employee Stock Ownership Plan (ESOP)!
Founder and President Kevin Maddox sold 100% of his shares in the company to a Trust that will own the stock. The trust beneficiaries are all the employees of the company. “This company has been the culmination of my life’s work and I have decided to sell the company,” he said during the companywide videoconference announcement. “I did not sell to fancy investors or to a competitor…I have decided to sell the company to you…the employees. All of you.”
The ESOP, which provides PSPI stock to all eligible team members, is designed to reward our long-term employees as a retirement benefit. ESOPs encourage team members to do what is best for shareholders, since they themselves are the shareholders. Employees pay no tax on the contributions until they receive the stock when they leave or retire. This plan is completely funded by the company. No employee contributions are required or allowed.
“All operations will continue as we know them,” Kevin explained. “I will continue as President and Chuck Phelps as VP, except that you will all be referred to as owners going forward.” As Kevin mentioned, this new ownership plan does not alter the anatomy of our company in any way. However, because our team members financially benefit from all their hard work, employees can now fully take pride in what they do and continue to reach new heights as California’s on-site fueling leader.