There were no Maseratis in the parking lot, at least not yet, but there was plenty of excitement as H-E-B partners gathered at the McCreless store on the south side to celebrate the firm’s surprise grant of non voting stock to 55,000 partners, News Radio 1200 WOAI reports.
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The Butt family, who founded the stores in 1905, will remain the primary owners of the company while anticipating its employees, known as partners, will eventually own about 15 percent of the company, the company said in a news release Monday.
CEO Charles Butt addressed the employees through a video, giving them and the hard work of his parents and grandmother credit for H-E-B’s success.
A vehicle passes by the new H-E-B on Tuesday.
He adds in the press release that this plan has been his “dream for decades”. “Our Partners shaped our past, define our present, and will lead us into the future”, he said.
In January 2016, eligible employees will receive a grant of stock valued at 3 percent of their salary, plus $100 in stock value for each year of continuous service completed by the end of 2015.
Given its market dominance in San Antonio, its expanding presence in Mexico and annual revenues in excess of $20 billion, it’s easy to forget that H-E-B is still a family-owned company.
Aisle guides hang in the new H-E-B on College Street on Tuesday.
H-E-B’s latest commitment to its employees is likely to further help its recruitment and retention efforts.
H-E-B is one of a handful of regional supermarket chains that have been able to compete effectively with Wal-Mart, which controls a quarter of the US grocery market. Employees will be enrolled automatically, without having to make a contribution. Her youngest son, Howard Edward Butt, grew the company that bears his initials from 1920 and 1971.
For a partner to be eligible, he or she must be 21 years old, have completed at least one year of service, and worked at least 1,000 hours in a calendar year. Howard Butt leads the development of the company’s division in Mexico, while Stephen Butt heads Dallas-based Central Market.
By going the employee-ownership route, H-E-B joins a list of other successful chains including Hy-Vee, Publix and Winco.
“This is probably the most important thing to happen at H-E-B in a heck of a long time”, Boyan said. It operates stores in several Mexican states. In addition, each year Partners donate more than 100,000 volunteer hours to support a wide range of local programs.
H-E-B runs more than 370 stores in Texas and Mexico and employs more than 86,000 people in Texas and 9,000 in Mexico.
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According to reviews on Glassdoor, H-E-B earns a rating of 4.1 stars out of five.
