Artel Video Systems has announced that on October 1st they became a wholly employee-owned company through the creation of the Artel Video Systems Corporation Employee Ownership Trust.
The trust has been formed as an Employee Stock Ownership Plan (ESOP) and, according to Richard Dellacanonica, president and CEO of Artel, the new ownership plan will make the company a better organisation in terms of both financial performance and customer satisfaction.
“It is well documented that broad-based employee ownership enhances a company's financial performance while dramatically improving all of its customer satisfaction metrics,” says Dellacanonica.
Artel, a leading global provider of broadcast-quality media transport solutions, such as the DigiLink media transport chassis, owes its success to its employees, Dellacanonica added. “Delivering the world's most reliable, simple to install and support media transport equipment has been our charter for more than 30 years and we have been successful at it because of our employees.”
Artel has grown its activities in the broadcast sector in recent years and in November last year created the position of Director of Broadcast Sales to further grow their activities in this vertical. Philip Dubs, with more than 30 years of experience in sales, operational, and management roles in the broadcast industry, was hired for the new position.
ESOP plans have been an effective tool used by large and mid-sized public and private companies to provide employee loyalty and dedication to their organisation for several decades.
Created under the rules and guidelines of the U.S. Government Employee Retirement Income Security Act of 1974 (ERISA), the unique organisational plan has become increasingly popular in recent years.
Currently, there are more than 9,000 active ESOPs in the United States.