HMC Architects announced today that it has become a 100% employee-owned firm by launching an Employee Stock Ownership Plan (ESOP).

“It is our talented employees that set us apart at HMC,” says President and CEO Randy Peterson, FAIA, LEED AP BD+C. “We want our employees to act and think like owners, and directly benefit from HMC’s continued success as participants in the ESOP.”

“This is an extremely significant business decision, and one of the boldest in our 72-year history.” adds Peterson. “Most senior managers and previous owners are almost 15 years from retirement. We were already a broadly held firm and our decision to become an ESOP was a natural evolution of our culture of collaboration.  The most important goal of this transition is to provide additional benefits to all HMC employees in recognition of their exemplary work on behalf of our clients while securing the future success and proud legacy of HMC Architects.”

The move to ESOP does not change the management structure of the privately owned firm.  The plan, which allows employees to earn stock in the firm, is designed as a long-term retirement benefit for all employees as owners. Under the plan, all eligible employees will earn a yearly allocation of stock and their value will increase as the value of the firm increases.  HMC intends to continue maintaining its 401(k) Plan and encourages employees to utilize this added retirement vehicle to diversify their retirement assets.

The surprise announcement was made to employees during a company-wide videoconference and was met with great enthusiasm. Peterson noted that becoming an ESOP was further evidence of why HMC Architects was named “Best Firm to Work For” by Building Design & Construction magazine in 2011.

“Employee ownership rewards staff for innovation and strong performance,” Peterson adds. “HMC has always valued our employees. The move will help us recruit new talent while retaining experienced and dedicated employees. All of us at HMC are very excited about the future.”