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Dorian Drake International announces creation of Employee Stock Ownership Plan
White Plains, NY (December 20, 2013) – Dorian Drake International, Inc., the New York-based export management company, has announced the creation of an Employee Stock Ownership Plan, or ESOP,for its approximately 45 US-based staff members.
Ed Dorian Jr., Dorian Drake’s majority owner and president, said the company simultaneously formed a synthetic, or phantom, stock plan for its approximately 20 non-US staff not eligible for participation in an ESOP, a tax-deferred employee retirement plan sanctioned by the United States Internal Revenue Service.
Dorian noted that Dorian Drake took a step toward employee ownership in 2002 when the company began practicing open-book management, sharing its financial statements and engaging staff members in the financial management of the business. “After eleven years of open-book management,” he said, “it was a not a big leap to go to employee ownership.”
He said that these plans, created by a small initial grant of company stock, were designed with a few goals in mind.
“First,” he said, “these plans give us the opportunity to discuss with our staff the things we need to do to build shareholder value. “These conversations are a lot more meaningful when everyone shares in the ownership of the company.”
“Second,” he said, “we hope this plan will help us retain staff. We work hard to recruit, develop and retain the best people in our field. We believe employee ownership gives people another reason to stay and build their careers with Dorian Drake.”
Dorian said the employee stock ownership plans could also provide him with an eventual exit strategy. “If I come to a point where I think I need to sell the business, the ESOP and phantom stock plans would provide the option to sell the business to the people that helped us build it.”
Knut Sauer, the firm’s Automotive Group manager remarked, “Open-book management grew employee awareness about the bigger picture and educated everyone how they could contribute to corporate profitability. Implementing an ESOP further motivates the employees to drive the long-term value of the organization. It’s very exciting to see the ongoing transformation in people going from line staff to financially aware employees to owners.
Based in White Plains, N.Y., Dorian Drake International is an export management company that manages international sales and marketing, customer service, credit and collections, and traffic and logistics for manufacturers selling in markets outside the United States. The firm staffs stand-alone sales teams in four distinct industries: automotive products, foodservice equipment and supplies, hardware and lawn & garden products and industrial and environmental products.
- Sigfredo Diaz
- Manager of IT & Marketing Services
- Dorian Drake International, Inc.
- Tel +1 (914) 697-9800