April 19, 2013 Jeffrey Evans The Will-Burt Company CEO, President and Chairman Jeffrey Evans, THE Will-Burt Company Will-Burt: 1894, 1918, 1986 ESOP 6th CEO over 120 years Several other ESOP boards of directors How do ESOPs stack up with others? Employee-owned companies do better than their peers ◦ Sales and profits ◦ Employee morale ◦ Adherence to values and mission ◦ Long-term wealth creation for everyone ESOP Success Examples Will-Burt from 2000 through today ESOP company on the verge of bankruptcy TRW / Argotech Firestone Tire Stores So HOW does this happen? It starts at the top - leadership must be committed to the ownership culture Employees that think and behave like owners perform like owners HOW is the Culture Built and Nurtured? 1. 2. 3. Communications – start with listening Shared challenges, shared resources, and shared benefits Be true to your values 1. Communications Start with listening MBWA Quarterly Newsletter Quarterly All Hands Meeting Weekly “News from the ‘Burt” Open door policy 1. Communications Monthly lunch with the president Monthly EAC meeting (employee activity committee) Z-Dep quality policy 2. Shared Challenges, Resources, Rewards Open book management ◦ “The good, the bad, and the ugly” ◦ Everyone needs to understand the goals ◦ Include key objectives and metrics ◦ Everyone gets annual strategic plan summary Accountability and alignment ◦ “It is not / IT IS my job!” 2. Shared Challenges, Resources, Rewards Good communications, alignment and accountability lead to a “Snowball Effect” 1. 2. 3. 4. Develop and follow the plan See improvement Achieve shared profits and stock valuation Go back to step #1 3. Be True to Your Values Will-Burt Mission and Values Long-term Goal: Make Will-Burt a place where people want to work Quality, safety and profit (in that order) Balance between current income and bonus, benefits, and long-term stock growth 3. Be True to Your Values Fair wages 2 retirement plans (ESOP, matching 401-k) Excellent medical and other benefits Bonus to all employees in “good years” Excellent stock value growth 3. Be True to Your Values ESOPs are better for customers, employee-owners Tax law and structure make ESOPs possible Culture makes performance happen Top leaders must develop, feed and care for ownership culture