H-E-B To Offer Employee Stock Ownership Plan
H‑E‑B, the largest private employer in Texas, announced Monday that 55,000 employees would be eligible to receive a portion of stock in the company under a new employee ownership plan. The Butt family will remain the primary owners of the company.
H‑E‑B anticipates that employees, known as partners, will own about 15 percent of the company over time.
In January 2016, eligible partners will receive a grant of stock valued at 3 percent of their salary, plus $100 in stock value for each year of continuous service completed by the end of 2015. Going forward, yearly contributions to the stock plan will be made based on company performance.
“The Partner Stock Plan is a milestone and a recognition of our most important resource – our people,” said Charles Butt, H-E-B Chairman and CEO, in a new release. “Our partners are the competitive edge that brings innovation, growth, and success to H-E-B. This plan has been my dream for decades.”
Craig Boyan, H-E-B President and Chief Operating Officer said, “This historic offering reflects our commitment to our partners and the communities we serve. We are anchored in our mission to hire the best people, offer the best service, provide the best products at budget sensitive prices, and operate our business in a way that reflects our deeply ingrained value system.”
H-E-B was founded by Florence Butt in 1905 in Kerrville. Her youngest son, Howard Edward Butt, led the company’s entrepreneurial period from 1920 to1971. He died in 1990.
The company’s name, H-E-B, reflects his initials. When his youngest son, Charles Butt, was named president in 1971, H-E-B recorded $221 million in annual sales. Today, annual sales for the company, which includes more than 370 stores in Texas and Mexico, exceed $23 billion.