ESCA is thrilled to share that 100% employee -owned and ESCA Member, McCarthy Holdings, Inc., is celebrating their 150th anniversary this month, reinforcing the company as one of the oldest American-owned construction companies with offices nationally.
McCarthy was founded as a family-owned business in 1854 during the height of the Civil War. Since then, the company has grown to approximately 1,700 salaried employee-owners, positioning the company as one of the largest employee-owned companies in the U.S., and is now the nation’s 8th largest domestic general contractor, according to Engineering News-Record (May 2013).
In 1996, McCarthy created their Employee Stock Ownership Plan (ESOP) and on April 12, 2002, Michael McCarthy sold his majority ownership interest in the company to its employees.
As an S ESOP, McCarthy employee-owners have a unique perspective on every relationship, and every project. According to their website, “Each of us has a stake in the outcome—not just financially, but professionally as well. Because above all else, we take pride in overcoming the challenges our competitors wouldn’t dare touch.”
Since McCarthy employee-owners have skin in the game, they are always looking to improve their practices and perform at the highest level, raising “self-reliance and responsibility to a new level.”
“Our new adventure as a 100 percent employee-owned business began during an extremely difficult time for our nation, right after the events of September 11, 2001,” explained McCarthy Chairman and Chief Executive Officer Michael Bolen in 2012 as the firm celebrated a decade of 100 percent employee ownership.
“Despite the nation’s economic highs and lows over the same time period, employee ownership has literally transformed our company. It’s made us even more client focused because it’s in everyone’s best interest to meet or exceed client expectations. Moreover, with the addition of the ESOP, our employee owners now have an additional retirement benefit — an outstanding advantage from which all Americans could gain,” continued Bolton.
Findings from a 2013 report tout McCarthy’s continued success as an S ESOP. The report revealed that employee-owned companies that have employee stock ownership plans have demonstrated higher productivity and increased economic resilience despite economic fluctuations. According to the study, “The S ESOP structure in particular has been show to lead to greater firm longevity and higher wages, wage growth, job stability, retirement plan contributions, employment, and sales than would otherwise have been anticipated.”
ESCA congratulates McCarthy on reaching this impressive milestone! You can check out their website dedicated to celebrating 150 years here.