Built with Purpose summary

Employee ownership within a company fundamentally transforms its culture and operational dynamics by aligning individual interests with the overall success of the business. Everyone becomes a stakeholder, directly sharing in the rewards of increasing the company’s value. This collective benefit ensures that no one is left behind as the company progresses.

At Torch Technologies, the concept of employee ownership was more than a business model – it was a crucial strategy for both growth and recruitment. During its initial cash-poor phase, Torch couldn’t compete with larger corporations on salary alone. Instead, it offered potential employees a stake in the company. This proposition was compelling enough that many of Torch’s early management team members accepted pay cuts of 20 to 30 percent, drawn by the opportunity to be part of building a business from the ground up as owners.

At Torch Technologies, the innovative concept of aligning individual rewards with organizational success has been pivotal in fostering a culture of ownership and commitment. By implementing shared ownership, the company ensures that everyone is united in the mission to enhance the business’s value, creating a win-win situation for both the employees and the organization.

Torch took this alignment a step further with the introduction of Stock Appreciation Rights, or SARs for short, following the cashing out of initial stock options in 2011. Unlike traditional equity, SARs are a form of “synthetic” equity. They offer employees a chance to earn bonuses based on the increase in stock price over time. This setup motivates employees to contribute to the company’s growth, since their financial reward is directly tied to the company’s performance.

When Bill Roark was recovering from heart problems in a hospital, he encountered an experience that profoundly influenced his perspective on employee responsibility and ownership. Tasked with walking two miles a day to qualify for discharge, Bill began his recuperation by making laps around the cardiac care unit. During his walks, he met Carlos, a hospital employee who cleaned the floors during the early hours.

Carlos played a pivotal role in ensuring Bill’s safety during these walks. Each time Bill approached, Carlos would stop his work, step off his machine, and diligently dry the floor to prevent any slips. Despite the interruption to his routine, Carlos consistently greeted Bill with a smile and encouragement, viewing his role as integral to the patients’ recovery process, not just maintaining a clean environment.

Torch Technologies has consistently embodied the principle that “the time is always right to do what is right,” a mantra inspired by Martin Luther King, Jr. This guiding philosophy has been central to the company’s operations and decisions, influencing how they treat subcontractors and maintain their commitment to employees, even in challenging times. This approach has proven to be not just morally sound but also beneficial for the company, reinforcing a cycle of positive actions and rewards.

Early in its journey, Torch recognized the importance of structured community involvement. Rather than making unilateral decisions about charitable contributions, founders Don and Bill engaged employees to develop a more democratic approach. This led to the creation of Torch Helps, a charitable program managed by employees, reflecting the company’s ethos of empowerment and collective decision-making.