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SAN ANTONIO — H-E-B, a regional supermarket chain that is the largest private employer in Texas, announced Monday it will begin granting stock in the company to 55,000 employees.
H-E-B, a regional supermarket chain that is the largest private employer in Texas, announced Monday it will begin granting stock in the company to 55,000 employees.
The company says the plan commemorates the 110th anniversary of the H-E-B, which was founded and is owned by the Butt family. Under the new plan, the family will remain the primary owners, but employees, known within the company as partners, will in time own approximately 15%.
In January 2016, eligible employees will receive a grant of stock valued at 3% of their salary, plus $100 in stock value for each year of continuous service completed by the end of 2015. Future yearly contributions to the stock plan will be made based on company performance. To be eligible, an employee must be at least 21 years old, have completed at least one year of service and worked at least 1,000 hours in a calendar year.
"The Partner Stock Plan is a milestone and a recognition of our most important resource — our people," said H-E-B chairman and CEO Charles Butt in a statement. "Our Partners are the competitive edge that brings innovation, growth and success to H-E-B. This plan has been my dream for decades. It is a gift that recognizes our Partners’ ongoing commitment to H-E-B. Our partners shaped our past, define our present, and will lead us into the future."
H-E-B says the new employee stock ownership plan will supplement, rather than replace, its 401k benefit.
