ROCHESTER, N.Y. - Sept. 11, 2019 - KJT, a New York based market research consulting company has become 100% employee owned. KJT turned to The Menke Group, the nation's largest advisor specializing in Employee Stock Ownership Plans to help execute the transaction. Some 22,000 companies have adopted ESOPs since they became legal in 1974, according to Phil DeDominicis, Menke's senior East Coast investment banker who structured the transaction.. Most are small ― 70% have less than 250 employees ― and privately owned.
"I've considered transitioning to a 100% ESOP for the past few years and I'm very happy that this has finally become a reality," said Founder and CEO Dr. Kenneth J. Tomaszewski. "As a global professional services firm, our hard-working, dedicated employees are the lifeblood of KJT Group. Transitioning to an employee-owned company allows me to reward our employees for their dedication and commitment, many of whom have been with the company for more than 10 years. I believe it creates a more sustainable business model, here in Rochester, NY, for our employees and our clients. We expect that providing ownership to employees will lead to greater employee satisfaction, reduced turnover, and a more rewarding work experience. As a 100% employee owned company, we are able to create a more meaningful companywide culture of employee empowerment and responsibility." Dr. Tomaszewski will remain the CEO and Chairperson.
An ESOP is a type of retirement plan popular for shareholder succession and employee benefit purposes. In certain situations, they enable the long-term deferral of both capital and corporate taxes. Employees do not pay out of pocket, either. The company contributes cash to the employee stock trust which in turn bought stock from existing shareholders. In addition to creating greater financial security for employees, ESOPs can also increase employee productivity and efficiency. According to The Menke Group, this all helps to better align the interests of employees, management, and shareholders.
About The Menke Group: The Menke Group (http://www.menke.com) has helped over 3,500 companies use employee stock ownership plans as part of their ownership structure. Founded in 1974, they specialize in the structuring and ongoing maintenance of these plans.
About KJT Group: KJT Group (http://www.kjtgroup.com) is an evidence-based consulting firm. Through co-creative partnerships with their life sciences clients, they capture actionable insights that enhance strategic and tactical decision-making. Founded in 2007, KJT Group employs nearly 50 full-time staff across the United States. KJT Group is a member of Intellus Worldwide, the European Pharmaceutical Marketing Research Association (EphMRA), and the British Healthcare Business Intelligence Association (BHBIA).
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Trevor Gilmore
