R.F. MacDonald Co. Announces Transition to Employee Stock Ownership Plan

HAYWARD, Calif., Aug. 29, 2024 /PRNewswire/ -- 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 July 31, 2024 and went into effect Jan. 1, 2024.

This celebratory announcement reflects our strong and growing company with 284 employees working in service, sales and administration. There will be no changes to the management structure, practices or operations. In addition, CEO Jim MacDonald will continue to work at RFMCO and serve on the Board of Directors. While Jim is not retiring, as part of our leadership-succession planning, Jim Lowell joined our team January 2023 as President and COO. He formerly was Sr. VP of Operations at Cleaver-Brooks and President of CBSS. Before joining our company, we worked directly with Jim Lowell for many years.

We view this transition in ownership as the next step to ensure a sustainable future for RFMCO, while providing a valuable financial benefit to people who contribute to our success. We believe we have created a special company. Our employees passionately engage in problem-solving, innovation, collaboration and respect. Securing our independence through an ESOP allows us to further strengthen our long-established culture where we trust employees to "Do the Right Thing," another long-established company motto, and our "Hire-2-Retire" motto is further emphasized in this ownership-transition.

A few highlighted benefits to 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.

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.

Contact
Melanie Acker
Chief Human Resources Officer
P: 510-670-7448
E: [email protected]

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SOURCE R.F. MacDonald Co.