Trinity Logistics announces employee ownership plan
Trinity Logistics of Seaford is now 33 percent team-member owned through an employee stock ownership plan. President and CEO Jeff Banning made the announcement to the entire team July 12, live-streaming to all of Trinity's locations. A transportation company founded in 1979, Trinity Logistics is a third-party logistics solutions provider with regional service centers in Kansas, Iowa, Minnesota and Texas.
Many companies opt to sell stock to an ESOP when the current owner is getting ready to retire. That is not the case with the Banning brothers. Jeff, Darrel and Billy are still very much at the helm. However, for Trinity Logistics, it is still the perfect succession plan. Jeff said what the family is most proud of is that the culture they have created over the last 38 years is still strong.
It is a culture founded on the principles of servant leadership and a culture of people who care about one another and the communities they serve. Trinity is guided by the values of integrity, determination, continuous improvement, teamwork, excellence and fun. The team is focused on leaving their mark: a legacy.
As the family discussed their options for succession planning, it was clear to all of them that the best path for Team Trinity was to give ownership to the team members to bring them on the journey Trinity started in 1979.
As Jeff made the announcement, he detailed the 38-year history of the company started by his parents Ed and Deana Banning. He stressed the importance of the company values, culture and teamwork in growing the company through challenges. The announcement came as a surprise to the team. Excitement in all locations was palpable as the news began to sink in that each team member now has an ownership interest in the company they love.
ESOPs have an overwhelmingly positive impact on the company, creating broad-based ownership among all team members, and fostering an environment in which everyone understands their role in helping the company achieve its bottom line. Research has proven over and over that employee ownership builds successful, competitive companies, and creates equitable wealth for employees. It has been shown that ESOP companies pay better benefits, have twice the retirement income for employees and pay higher wages than non-ESOP companies.
Perhaps more remarkable, 84 percent of ESOP companies agree that the ESOP improved motivation and productivity.
In a letter to the entire team, the Banning family stated, "We stand in awe of what can be accomplished in the power of 38 years of Serving First. Thank you again for taking this journey with us. We look forward to many more years of working together, serving our industry and our communities while taking care of one another in what we consider a culture standing on a strong foundation, a culture of trust and caring."
