Utah County auto shop's unique business model (KSL News)
Clegg Automotive
Case example · 8 min read · For: Owners / executives, Everyone
A local news case study of Clegg Auto's conversion to an employee ownership trust. It explains the choice of a perpetual trust over an ESOP and reports the first-year jump in profit sharing paid to everyone from janitorial staff to managers. Short, concrete, and good for starting a conversation with owners of small service businesses.
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Problems it helps with
- I want to share ownership but an ESOP feels too heavy for a shop our size
- I'm afraid employee ownership just gets undone when someone sells
- Our team doesn't believe profit sharing will ever amount to much
What it covers
- Why the owners chose a trust over an ESOP
- Bylaws that send assets to charity if the company is ever sold
- Profit sharing up from $40,000 to $400,000 in the first year, prices unchanged
- 10% of profits given to charity
Topics: Goals and performance metrics · Ownership models · Purpose