How do you create a company that lasts a hundred years?
We posed this question prior to launching the company. In a day when the world seems increasingly internally focused on the big payoff and many consultancies are “lifestyle companies” that exist for the lifestyle of a few owners, or behemoths where understanding a career path is difficult, this was a question worth spending a lifetime to answer. Reaching this goal and fulfilling our mission to grow requires us to stay focused on the long term; we are typically thinking in 10 to 20 year increments to make sure we don’t handicap the future for short term gains.
The ownership structure of the company would be important in allowing us to reach this goal and to fulfill our mission of growing talent; obviously we didn’t think in terms of some type of massive liquidity event or a sale of the firm to a larger company. Instead, we have made all employees owners of the company.
In 2007, we created an Employee Stock Ownership Plan (ESOP) and today it owns 34% of the company. Over time, the company will be 100% owned by the ESOP.
The Importance of Ownership
We believe employees who are company owners take better care of our clients and each other because their focus is on the long run and on maximizing the value of the company for themselves as owner employees.
Benefits of an ESOP
Being a privately-held company and employee-owned provides benefits for our employees.
Such benefits are that each employee is eligible to be an owner of Pariveda on their date of hire. In addition, it provides a tax benefit and is a wealth building tool alongside other plans we offer. Our annual stock valuation cycle allows management to make long-term decisions for the good of the company allowing employees to focus on their daily responsibilities while building long-term wealth.