Steinhafels says it is now 100 percent employee-owned after the company sold its stocks to an Employee Stock Ownership Plan.
The Wisconsin-based furniture store said in a statement Tuesday that the Steinhafels family made the decision in order to secure the future of the business and that it is in the "long-term best interest of Steinhafels associates."
“Each time our family has transitioned the business to a new generation, we have tried to balance doing what's right for our associates with ensuring the long-term health of the company," said Gary Steinhafel in the statement.
The Employee Stock Ownership Plan is similar to a profit-sharing plan: an ESOP is a long-term retirement plan in which associates will be granted shares of the company on an annual basis. The shares will vest over several years and have a share price that is based on the "success of the company," according to Steinhafels.
Steinhafels will remain a family-led company through the change. Andrew Steinhafel will serve as president, and will lead Steinhafels with the support of Mark, Ellen and Gary along with their executive team.
“The structure and day to day operations of our business will remain exactly the same, but as an employee-owned company, the success of Steinhafels is directly tied to the efforts of the employee-owner associates more than ever before," said Andrew Steinhafel.
Steinhafels has been family-owned since opening in 1934.