As a 100-percent ESOP (Employee Stock Ownership Plan) corporation, Pewaukee-based CC&N is entirely owned by its employees. (To read the cover profile on CC&N, click here.)

While this arrangement fosters a high level of pride among employees who see their contributions as an investment in their own futures, CC&N President, Lisa Reardon says it also requires a leader who understands and works within an ESOP’s unique corporate culture.

“I believe it takes a certain type of executive leader to want to work in an ESOP,” she says. “Every decision you make at the end of the day has to improve value for every employee owner.”

Guiding an employee owned company requires management to maintain open lines of communication with all employees, who require accurate and current information about the organization’s financial picture.

“The key is for employees to feel as if executive leaders are communicating with them,” she says. CC&N leadership routinely asks employees for feedback to ensure they continue to provide appropriate information to employee owners.

Reardon also strives to make sure all employees feel comfortable asking questions of the executive team. She encourages employees to ask questions in person or anonymously at company meetings, but also creates an environment where they can query any member of the executive staff, at any time, and managers are willing to provide answers.

“Employees cannot be afraid to ask about how we are spending money,” Reardon explains. “They have the right to ask those types of questions.”

CC&N also has an ESOP committee to help employees understand the benefits of ESOP ownership and know how to redeem shares if they leave or retire.

She explains the law requires ESOPs to purchase stock from employees when they leave. This is known as repurchase obligation, and without solid advance planning it can derail an ESOP’s financial future. CC&N’s CFO, board of directors and Principal Financial Group in Appleton, have put a five-year strategy for repurchase in place to ensure this doesn’t happen.

“If you’re not on top of it, and don’t understand it, it can be a problem,” she says. “This generates administrative and compliancy costs, but these are challenges an ESOP organization must address.”

According to Reardon, an ESOP’s benefits, however, far outweigh the challenges. She stresses pride of ownership among ESOP employees is unmatched in traditional corporations.

“It is the main reason customers say they buy from CC&N again and again,” she says. “Every employee understands that regardless of what role they have in our organization, it is all about providing the best service we can possibly deliver. Our employees always act in the best interest of our customers because they really understand the value that brings.”