Employee Stock Ownership Plan

KCI is a 100% Employee-Owned Firm

KCI Technologies, Inc., became a majority, employee-owned company on December 15, 1988, when employees bought the company from Hanson Trust, PLC, of Great Britain. On January 1, 1990, the company established a qualified retirement program for the stock of KCI Technologies, Inc., to be held in trust by an Employee Stock Ownership Plan (ESOP). The ESOP initially owned approximately 82% of KCI stock. In June 1998, the company bought all of the management shares (non-ESOP shares) and became 100% employee-owned. KCI changed the corporate structure to a Subchapter S corporation on July 1, 1998, virtually eliminating the firm’s tax liabilities and improving the value of ESOP stock. 

ESOP: A Qualified Retirement Plan

An ESOP allows employee stock to be treated as a retirement vehicle, in accordance with the Employee Retirement Income Security Act (ERISA), where the value of participants’ stock grows tax deferred until retirement.

A Strategic Advantage

As participants in an ESOP, employees have a personal, vested interest in the success of their projects and the organization. Employee ownership fosters an entrepreneurial spirit, encourages technical expertise, and shapes the company’s strategic planning and organization.

As owners, KCI employees and managers share responsibility for growing the company by providing quality, innovative services to clients, often on award-winning, high-visibility projects. The company, meanwhile, nurtures an open and challenging environment, where everyone can make a difference, be rewarded for their efforts, and enjoy coming to work.

A strong work ethic is the foundation for KCI’s solid client relationships and, in turn, growth in corporate performance and employee stock value. Since 1988, employees have enjoyed a 950% increase in the value of their stock.