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ON THE MOVE CUHACI & PETERSON ARCHITECTS, ENGINEERS AND PLANNERS NAMES CHIEF DEVELOPMENT OFFICER Jeff Suchan has been named chief development officer by Cuhaci & Peterson Architects, Engineers and Planners . Suchan joined the firm in 2016 as principal and during his tenure, he assisted in the expansion of the firm’s corporate retail sector as well as leading the firm’s food service sector. An alumnus of Kansas State University and the NewSchool of Architecture & Design, he has more than 20 years of experience with various large scale corporate retailers and large and small REITs and retail developers. Suchan holds architectural licenses in several states and is also a member of International Council of Shopping Centers, the American Institute of Architecture, and the National Council of Architectural Registration Board. As CDO, Suchan will work hand in hand with principals and BD to develop and communicate a cohesive growth and sales strategy for the firm as

participants over time. In most cases, ESOP shares are provided to employees and do not require any economic invest- ment by the employees. The benefits of an ESOP can provide for substantial compen- sation to employees over time, allowing its employees to share in the success of the company. ❚ ❚ Legacy. An ESOP provides a business owner with the most flexible way to transi- tion a business, as it can be done in a mul- titude of ways to ensure it aligns with the objective of a selling shareholder(s). While third-party sales may ultimately align with a selling-shareholder’s objectives, it often comes with many changes. With an ESOP transaction, the buyer of the stock is a newly-created trust created for the purpose of acquiring shares for the benefit of the company’s employees. The day-to-day management of the company and the executive team can, and typically does, remain unchanged. The selling share- holder has the flexibility to remain with the company in his or her desired capacity for his or her desired time frame, allowing the company to remain on its course and ensuring continuity for the business. ESOPs also provide the sponsoring company, and potentially the selling shareholder, with significant tax benefits, which will be the focus of Part Two of this series. Wintrust Financial Corporation is a more than $28 billion financial services company headquartered in the Chicago area. JAMES SWABOWSKI is senior vice president; and PAT STOLTZ is managing director of the ESOP Finance group at Wintrust Financial Corporation. They can be reached at jswabowski@wintrust.com and pstoltz@wintrust.com. Cuhaci & Peterson expands its presence, services, and brand within the A/E industry. CEO Greg Simpson stated, “As we continue our firm’s nationwide expansion, having someone with Jeff’s knowledge and capability take our go- to market strategy to the next level, engaging not only the principals, but also our firm’s technical leadership, will enable us to work with and grow some very meaningful relationships. We’re pleased that Jeff has taken on the role of chief development officer and look forward to 2019 and beyond.” Cuhaci & Peterson is a national firm specializing in commercial design. Headquartered in Orlando, Florida since 1978, the firm also has offices in Philadelphia and Boston and is licensed in 49 states. Cuhaci & Peterson offers architectural, SMEP engineering, fire alarm/protection, lighting design, construction administration, landscape, and planning services as well as in-house government relations and interior design on a variety of project types.

2018 PRINCIPALS, PARTNERS & OWNERS SURVEY Zweig Group’s 2018 Principals, Partners & Owners Survey is a comprehensive study of owners and top managers of U.S. AEC firms. This eye-opening report covers ownership, stock appreciation, buy/sell agreements, non-compete agreements, voting rights, roles, responsibilities, perks, compensation, and more. The 2018 Principals, Partners, and Owners Survey has data on the following: ❚ ❚ Principal compensation, benefits, and perks ❚ ❚ Common issues and challenges related to running an AEC firm ❚ ❚ Qualifications, job requirements, and demographics of principals, partners, and owners in the industry ❚ ❚ Employment agreements, non- competes, and stock buyback provisions ❚ ❚ How principals manage time and break down the work day Zweig Group’s 2018 Principals, Partners & Owners Survey of AEC Firms is the one annual report for, by, and about principals and top managers in U.S. AEC firms, and it’s the only source of inside information on the issues that principals are really concerned with. For the 2018 edition, principals from across the U.S. in the AEC industry, were questioned about their compensation, perks, privileges, ownership, work habits, professional backgrounds, personal life, and feelings about business practices, fellow principals, and industry issues. Their responses were then tabulated and analyzed. Visit bit.ly/PPO1279 to learn more.

JAMES SWABOWSKI & PAT STOLTZ, from page 9

distraction. Additionally, as firms continue to grow, the economics behind buying ownership may be too great for key indi- viduals, making it even more difficult to recruit or retain personnel. In an ESOP, all qualified employees are al- located shares of the company over time. Shares are allocated based on salary (with maximum limits), to allow for key manag- ers to receive enriched compensation in the form of ESOP stock. Key management may also have the ability to be awarded synthetic equity to allow the company to continue to reward its key people. This has helped ESOP-owned companies retain their key employees and perform better than their peers. A study from the National Center for Employee Owner- ship found that productivity improves by an extra 4 to 5 percent on average in the year an ESOP is adopted, and the higher productivity level is maintained in subse- quent years. This one-time jump is more than twice the average annual productivity growth of the U.S. economy over the past 20 years. ❚ ❚ Recruitment. With the current unem- ployment rate at less than 4 percent, it’s becoming increasingly difficult to attract talent. With wages continuing to increase, employers are looking at more creative ways to differentiate themselves to con- tinue to attract top talent. Having the ability to offer candidates par- ticipation in the ESOP may provide your company a benefit your competition may not be able to offer. An ESOP is a benefit plan in which shares are allocated to its

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THE ZWEIG LETTER January 14, 2019, ISSUE 1279

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