The 181 employees of West Allis-based Poblocki Paving Corp. now own the company.
Owner John Poblocki, who started the company 49 years ago, recently formed a 100 percent Employee Stock Ownership Plan. The asphalt paving and snow removal company was sold to the ESOP, a qualified retirement plan, and John Poblocki received the undisclosed proceeds.
Poblocki Paving will also continue its profit sharing program, which was started in the late 70s or early 70s, John Poblocki said. The firm has contributed about $7 million to profit sharing since the program was started, and some employees have seven figures in their accounts, he said.
“We started profit sharing so that I could build wealth for people, including myself. I wanted them to have a share in what we made, and that’s really what led me into ESOP,” Poblocki said.
While Poblocki considered selling the company, he ultimately decided an ESOP was the best succession plan because he could keep the management team and employees in place, and maintain the company’s culture.
He is no longer the owner, but Poblocki doesn’t plan to retire anytime soon, he said.
“I’m cashing out slowly. I’m going to continue helping the business as it goes down the road. It’s still growing and I intend to continue helping it grow,” Poblocki said.
And because ESOP companies operate tax-free, it will be easier to fuel that growth, he said.
“It allows us to buy equipment twice as fast as we had in the past,” Poblocki said. “It allows us to operate better.”