Popular New York store makes over 175 of its employees into millionaires overnight

In many companies worldwide, employees are deemed easily replaceable in a backdrop of massive job-seeker demand. Therefore, to retain their jobs, some employees tend to work at meager pay or for mere tips. But Stewart’s Shops, a convenience store chain based in Upstate New York and Vermont, is cognizant of the value and success each of their staff members brings to the thriving organization and has introduced a special incentive plan that turned 175 employees into millionaires, as per a report by Your Tango. 

For those wondering what kind of incentives cash in millions of dollars for staff workers, Stewart’s Shops believes in sharing their profits with their employees through an ownership package. This arrangement is available to those who meet certain criteria of eligibility, that is, 500 hours of work done in a quarter or 1000 hours in a year. The employees can then open an Employee Stock Ownership Plan (ESOP) that allows them to own one-third of the company, which further motivates them to work harder for the company’s success as stakeholders. The greater the investment, the higher the payouts that bump up to amounts greater than the employee’s gross salary in a year. 

The ESOP plan has been tried and tested, with 90 partners becoming millionaires in 2019 and 175 by 2020. In a press release the same year, Stewart’s Shops shared, “Our employees are called Partners, and they are since they own over 40 percent of the company through their ESOP, which is 100 percent funded by the company for anyone working at least 1000 hours a year. After six years in the plan, a Partner’s balance is usually greater than a year’s pay. In April, our Partners received 17.5% of their 2019 gross pay into their ESOP." A total of $50 million ESOP dividend was distributed to the eligible partners. They proudly announced that Stewart’s Shop has enjoyed years of stability and success in the competitive market as several companies face financial difficulties amid U.S. economic crises.

Originally started as a family business by the Dake family, the ice cream shop, typically found at gas stations, has witnessed exponential growth over the years giving way to a chain of convenience stores in the U.S. state. An interesting backstory lingers beneath the chain’s success. In 1945, the Dake brothers bought a small dairy and ice cream business in Ballston Spa– the first ever Stewart’s ice cream shop. At present, the Dakes own over 350 stores run by more than 5,000 employees in New York and southern Vermont, per an official report. 

Bill Dake, the Chairman of the Board is still actively involved in the business despite being in his ‘80s. His son, Gary is a third-generation member of the Dake family and currently serves as the company’s President, having worked there for 35 years. Quite remarkably, 40 percent of the company is now owned by the employees. By now it is well established that Stewart’s Shops is not an ordinary profit-making business. They believe in strong community work to drive success and, routinely donate $9 million to non-profit organizations as a contribution from the Dake Foundations. Fair to say, Stewart’s Shops easily checks most of the ideals of a valuable employer that provides appropriate compensation, career development, and purpose and mission, among others.