Normandeau’s status as an employee-owned company is something we’re extremely proud of. But as any organization that is employee-owned knows, the path to employee-ownership is not an easy one. For Normandeau, it involved management buy-in, lots of paperwork, and an abundance of patience. Our company is greatly indebted to Pam Hall, Sue Sanborn, and many others who forged the path toward employee-ownership 25 years ago.
Normandeau Associates, Inc. was founded by Donald Normandeau, PhD in 1970 shortly after the U.S. EPA was established. In 1987, Thermo Electron Corporation (“Thermo”) (now Thermo Fisher Scientific), purchased Normandeau Associates, Inc. from Donald Normandeau. In late 1999, Thermo decided to divest from its professional services business. In order to ensure the future of Normandeau Associates, senior management led the effort to buy the company from Thermo and make it employee-owned through an Employee Stock Ownership Plan (“ESOP”). With the assistance of Thermo, an outside investor, 23 senior managers, and a bank loan, Normandeau employees acquired the company at the end of June 2000.
An ESOP, or Employee Stock Ownership Plan, is an IRS-qualified retirement plan where employees gain ownership in the company they work for. The company establishes a trust that buys company stock, and the trust then distributes shares to employees’ retirement accounts. Eligible employees are enrolled in the ESOP at no cost to the individual. ESOP shares are typically allocated based on employee compensation. However, Normandeau’s shares are uniquely distributed based on compensation (50%) and years of service (50%). Employees become vested over a 5-year period at 20% per year.
Shortly after employees acquired the company in 2000, the ESOP Advisory Committee (“EAC”) was established. Since then, the EAC has continued with its mission “to create an ownership culture by serving as ESOP advocates; communicating the meaning of owner’s rights, benefits, privileges, and responsibilities; and encouraging participation and involvement in the company.” Serving as a facilitator of communication and trust among and between employee owners and management, the EAC organizes numerous volunteer efforts, sponsors companywide team building activities, hosts an annual employee photo calendar contest, distributes quarterly employee newsletters, and regularly fields employee suggestions and inquiries.
As a company, we believe that employee ownership provides us with a competitive advantage in an industry that is characterized by mergers, consolidations, and restructuring. Our status as an ESOP has empowered employees to invest more than just their time fulfilling their employment agreements—they’re also investing increased effort in a shared vision of the future. Please join us in celebrating our 25th year as an employee-owned company.
