R.F. MacDonald Co. is proud to announce ownership transition to its employees through a newly formed Employee Stock Ownership Plan (ESOP)
R.F. MacDonald Co., a commercial and industrial heating hot water and process steam systems supplier, is proud to announce an ownership transition to our newly formed 100% Employee Stock Ownership Plan. The adoption of our ESOP plan was formally completed on July 31, 2024 and is effective as of Jan. 1, 2024.
This celebratory announcement reflects our strong and growing company with 284 employees working in service, sales and administration functions. There will be no changes to the management structure, operations, policies or practices. In addition, CEO Jim MacDonald will continue to work at RFMCO and serve on the Board of Directors. While Jim M. is not retiring, we have been preparing for his eventual retirement. As part of our leadership succession planning, Jim Lowell joined our team January 2023 as President and COO. Jim L. formerly was Sr. VP of Operations at Cleaver-Brooks and President of Cleaver-Brooks Sales & Service. Before joining our company, we have worked with him for many years while he served in these capacities with Cleaver Brooks. Before joining our company, we worked with Jim L. directly for many years while he served in these capacities with Cleaver Brooks.
We view this transition in ownership as the next step to ensure a sustainable future for RFMCO, while also providing a valuable financial benefit to people who have contributed to our success. We believe we have created a special company, where our employees passionately engage in problem-solving, innovation, collaboration and respect. Securing our independence through an ESOP allows us to further strengthen our culture. Our “Hire-2-Retire” motto is further emphasized in this ownership-transition. Our ESOP structure is also complimented by our belief in a cultivated company culture and trusting RFMCO employees to “Do the Right Thing” — another long-established company motto.
A few highlighted benefits to our employees:
• Employee-owned shares typically create 3-7 times more value at retirement compared to a traditional 401(k) plan alone.
• RFMCO retained its 401(k) plan and 50% company match program.
• RFMCO physical offices in Hayward, Modesto, Fresno and Reno are included in ESOP.
The strength of R.F. MacDonald Co.’s employees and the Brain Trust managing future business endeavors will ensure the Persistence and future of RFMCO!
Jim & Mike MacDonald
R.F. MacDonald Co.
Leadership Meeting Announcing ESOP Plan
About ESOPs
An ESOP is a type of tax-qualified defined contribution plan through which employees receive a retirement benefit linked to the annual valuation of R.F. MacDonald Co. along with four of our occupied buildings now also owned by the ESOP. RFMCO will be joining approximately 7,300 other successful ESOP companies with 2.3 million employees which are equally committed to their independence, values and employees — and providing the best quality, innovation and service to their customers and partners. More information about ESOPs can be found at esopinfo.org.
About R.F. MacDonald Co.
R.F. MacDonald Co. was founded in 1956 and has grown into the leading industrial and commercial heating and process steam systems supplier and contractor in California & Nevada. RFMCO now employs over 284 personnel in 12 locations and currently services upwards of 10,000 customers.
How This Benefits Our Employees
Improved Job Security and Retention: Employee-owned companies tend to prioritize long-term stability over short-term profits. This translates to a focus on growth and job security, reducing layoffs and fostering a more loyal and experienced workforce.
Financial Benefits for Employees: Employee ownership helps employees envision a future in which they will have a path to wealth building through company stock ownership. This strengthens employee financial security and well-being.
Ownership Mindset: You’re not just working a job; you’re building a shared future. Employee ownership fosters a sense of pride and responsibility.
Long-Term Focus: Employee-owners are invested in the company’s long-term health, fostering stability and growth.
Sharing Success: As the company thrives, so do you.
Competitive Compensation: Companies with successful ESOPs often offer higher wages and benefits.
Stronger Retirement: Building wealth through company ownership strengthens your financial future.
How This Benefits Our Clients
Be Part of a Positive Impact: Contribute to a more sustainable and equitable business model.
Sustainability: Employee owners are more likely to consider the company’s environmental and social impact.
Supporting Local Businesses: Your purchase strengthens your community’s economic well-being.
Stability and Commitment: Employee-owned companies prioritize long-term success over short-term gains.
Community Investment: Employee-owned companies are often more invested in the communities they serve.
