FOR IMMEDIATE RELEASE
Technomics, Inc. Benefits Employees with Stock Ownership Plan
Arlington, VA – January 26, 2010 Rick Collins, President and CEO of Technomics, proudly informed employees on January 26, 2010 that the Company formed an Employee Stock Ownership Plan (ESOP) and, in doing so, has joined the growing list of companies whose employees are stakeholders. “The Plan has several objectives,” Mr. Collins indicated. “First, to provide ownership of the company to those that build the company; second, to provide a significant retirement benefit and a reason to want to make the company more successful; third, to provide a tool to motivate, retain and attract employees; and finally, to create a market for stock held by original owners without a sale to outside interests. The plan should result in increased employee incentives and provide them with long-term retirement benefits. We also hope the ESOP will encourage employees to create opportunities for the Company, including but not limited to ways to improve quality and productivity.”
A supplement to the company’s 401(k) plan, the ESOP represents one of three avenues by which employees can become stakeholders in Technomics, the other two being incentive stock option and restricted stock programs previously implemented by the Company. Formation of the ESOP was accompanied by a re-purchase of stock from the original two owners of Technomics, a transaction that resulted in the Technomics ESOP owning 33 percent of the Company. These ESOP shares will be distributed over time to employee ESOP accounts.
Mr. Collins indicated that establishment of an ESOP is an important step towards realizing one of his objectives upon joining the Company in June 2000, specifically broad and meaningful employee ownership wherein employees who contribute to the Company’s success are rewarded with an economic interest in the business. He thanked Mike Gallo and Jim York, members of Technomics’ ESOP Plan Committee, and Phil DeDominicis, Managing Director of Menke & Associates, Inc. for their respective roles in making the ESOP a reality. According to DeDominicis, who provided invaluable ESOP consulting expertise and participated in the company-wide meeting on January 26, some 20,000 companies have adopted ESOPs since they became legal in 1974. Most are small, 80% have less than 150 employees, and privately owned.
About Technomics, Inc.: Technomics is an employee-owned consulting company with a strong foundation in weapons systems cost estimating and research. The company has grown consistently over the past decade and has offices in Virginia and California.