ESOP is a way to transfer company ownership from one generation to the next—in many cases, this transfer happens when the original owners sell their stake in the company to their own employees. ESOP stands for Employee Stock Ownership Plan, but the acronym hardly conveys the potential of this empowering ownership model. That’s because ESOP is more than just a financial structure—it has the potential to shape company culture, fueling innovation, driving accountability and making an appreciable difference in the quality of customer relationships.

Our slogan at Eagle Precision is “Think Like an Owner,” which is a direct reference to our ESOP structure, and aims to boost awareness among our employees of the benefits we all share. Our employees are our company owners, and adopting that mentality has already led to a slew of innovations and improvements in our daily operations.

How Ownership Structures Can Change Everything

How the Eagle Group Became an ESOP Company

The Eagle Group’s ESOP journey began with Eagle Alloy. After recording positive results in employee satisfaction and productivity, Eagle Precision Cast Parts adopted it as well. When Eagle CNC was fully acquired by Eagle Alloy in 2023, they joined the company’s existing ESOP.

Manufacturing company owners have a variety of options to transfer ownership, either to realize value from companies they have built, or to facilitate their own retirement from the industry. A common choice is a strategic sale—either to a similar-sized manufacturer looking to expand capacity or capabilities, or to a larger industry player seeking vertical integration or to enter new markets.

Another common option is a sale to private equity, an ownership model that has become associated with a focus on short-term returns and restructuring operations for profit. While manufacturing owners all have their own reasons for choosing a model that monetizes their stakes, we know why our former owners, Mark Fazakerley and John Workman (both now board chairs within the new structure) opted to pass ownership to Eagle Group employees.

When John and Mark began thinking about succession, they knew they didn’t want to hand the company over to an outside buyer who might shut down the company, or radically change its character. Instead, they chose to sell to their employees, ensuring the company would remain rooted in West Michigan, where it has been a part of the community since Eagle Alloy opened its doors in 1979. Eagle Group leadership has a long-held goal of supporting the local economy by providing fair, accessible, and promising job opportunities to the people who call our town and West Michigan home.

Deb Pipoly, President of Eagle Precision, has seen the ESOP grow from its inception: “When you come to work at Eagle, if you've been somewhere else, it takes a long time to adjust because it's so different. It's so pro-employee, and most companies don't operate that way. Selling back to employees was their method of being able to continue to give back to the community and the people who have worked for them over the years.”

Encouraging the “Think Like an Owner” Mindset

When employees are owners, there’s a measurable shift in how they perceive their roles in the workplace. Under ESOP structures, not only are workers more prone to perfecting their own roles in the production value chain, they’re also incentivized to collaborate with other departments in tackling broader issues.

Our ESOP allows employees to be owners, but thinking like an owner doesn’t always come naturally. Employees are often accustomed to following instructions and meeting requirements set by supervisors. Owners, on the other hand, are more likely to take initiative, seek solutions to everyday problems, and care about the long-term health of the company. That shift requires effort and encouragement, which is why EPCP has launched initiatives to help foster an ownership culture: We throw a spotlight on significant improvements brought about by our own workers’ initiatives. We honor milestones. We continue to educate on what it means to be an owner, and how to embrace the opportunities that ownership presents. We recognize individual efforts and celebrate company-wide successes.

When every team member understands how their work impacts the bigger picture, they begin to approach challenges with the same care and responsibility as a business owner.

How Employee-Owners Benefit from ESOP

Beyond culture, ESOPs also provide tangible financial benefits. Employee-owners not only earn their regular pay, but also accumulate equity in the company over time. This creates a path to long-term financial growth that goes far beyond a paycheck, offering retirement security and wealth-building opportunities that are often out of reach in traditional ownership models. In our ESOP, each employee’s financial stake is tied to the growth of the company. As the company grows, so does the value of the company’s stock and, as a result, each worker’s share. Upon retirement, employees can sell their stock back to the company at the current market price. This payout can be huge—its size determined by the growth of the company during the employee’s tenure.

For EPCP employees, this means their hard work directly contributes to both the success of the company and their own financial futures.

Above: Eagle Precision Cast Parts Employee-Owners Busy at Work (Innovate, Execute, Repeat)

How ESOP Inspires Continuous Improvement

Recent leaps in continuous improvement at EPCP are directly linked to employees embracing the “think like an owner” mindset. When team members view challenges through the lens of ownership, they’re more likely to solve problems by identifying root causes, and to seek long-term gains that benefit everyone.

The process of making small changes that add up to big gains is what we call continuous improvement. Eagle Precision employee-owners have introduced practical upgrades across nearly every department:

In the wax department, we’ve made modifications to tooling, such as turning manual tooling into semi-automatic tools, improving the ease of operation and reducing the risk of injury.

In finishing, new SWAGS (standard work instruction guides) for processing and production flow of parts have streamlined workflow and eliminated unnecessary waste.

From smarter material movement to more efficient use of everyday consumables at the workplace (like earplugs), these employee-driven ideas are making our processes safer, leaner, more efficient. For a deeper dive on our continuous improvement program and the results it’s yielded, head here.

It’s no coincidence that we began championing our Think Like an Owner philosophy in tandem with our continuous improvement program: “That's why they were rolled out together. They parallel each other very much. You can make a difference. Think like an owner—why? Because thinking like an owner can make a difference in your share value,” explains Deb Pipoly.

We know it’s working because we created metrics to track our progress. In October 2024, we set ourselves the goal of realizing $200,000 in efficiency savings by the following October. By July, we’d already surpassed that number.

Why ESOP Companies Make Great Suppliers

Working with an ESOP company means partnering with a team built for the long term—one that values dependability and worker integrity, and prioritizing building strong relationships over short-term gains. ESOPs are not only an alternative to ownership transfers like strategic buyouts and private equity, but also insurance against them. With our ESOP in place, we are far less likely, as a company, to make abrupt changes that could affect our customers in the short and long term.

To anyone who has had experience working with ESOP companies, there’s a palpable difference in company culture. ESOP companies like ours recognize the responsibility we have to our employees, our customers, and the communities that have supported our growth. Every decision is made with an awareness of its broader impact where success is shared rather than extracted.

In today’s world of colossal corporate buyouts and private equity consolidation, where ownership is often removed to a different zip code from the shop floor, customers increasingly see the value in partnering with ESOP companies. It’s not just about dependability and longevity, but also about the transparent communications and problem-solving that are part of our company culture. At an ESOP company, you know your manufacturing partners are ready to build trust in a collaborative environment, and you can count on relationships standing the test of time.

ESOP as a Talent Magnet

Employee ownership builds more than just wealth. It builds long-term job security. In an ESOP company, because employees feel a deeper connection to their work and the organization’s success. Our voices are heard, our input matters, and we see the tangible impact of our efforts. That sense of respect and shared purpose translates into longer tenure, stronger teams, and a company culture that feels like a family endeavor.

Being an ESOP company is not without difficulties: clearly explaining the benefits to new employees can be a challenge. A good deal of education is required on the front end, but once everyone understands the long-term financial rewards of an ESOP, the structure becomes a major draw. The idea that one’s own efforts and one’s contribution to collective success contributes directly to retirement savings (and not just a distant shareholder’s) can be a powerful motivator. When younger employees see their colleagues retiring with financial stability, it creates an incentive to stay with the company, to help it grow, and to maximize the payout when their turn comes.

In order for ESOP companies to reach their full potential, education is key. ESOPs can be complex, and their true advantages take time to appreciate. That’s why education and celebrating real examples of wealth creation are vital— when newer employees meet employee-owners who’ve built careers, financial security, and community pride through ownership, they get motivated. And when that message eventually lands, the ESOP becomes a magnet for people who want to invest their energy into something lasting.

Working for an ESOP foundry offers clear advantages: employees gain a direct stake in the company’s success, enjoy greater job stability, and benefit from long-term financial growth. The ownership model fosters accountability and encourages practical innovation, as workers continuously look for ways to improve processes, safety, and efficiency.

For customers, partnering with an ESOP company means working with a team focused on reliability, quality, and long-term relationships rather than short-term profit. Continued education and engagement are key to sustaining this model—raising awareness, maintaining motivation, and encouraging idea generation ensure that accountability and innovation remain central to the company’s operations. Together, these factors create a foundation for lasting performance and shared success.