Idaho Businesses Adopt ESOP Model to Secure Succession and Reward Employees

About 45 companies in Idaho operate as ESOPs, providing financial benefits to employees and ensuring long-term stability.

Published on Feb. 13, 2026

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When it comes to succession planning, more Idaho businesses are turning to the Employee Stock Ownership Plan (ESOP) model, which gives employees ownership stock in the company they work for. This provides financial benefits tied to the company's success and helps preserve culture, reward employees, and ensure long-term leadership. Companies like HC Company, Sletten Construction, and Schweitzer Engineering Laboratories have adopted the ESOP structure for these reasons, though it also comes with some challenges like the long-term vesting period before employees can fully benefit.

Why it matters

The ESOP model is becoming an increasingly popular option for Idaho businesses looking to secure their future and reward loyal employees. It allows companies to remain independent, retain leadership teams, and ensure the company's success directly benefits its workers, supporting engagement, accountability, and long-term stability. This is especially important in an era of high turnover and corporate consolidation.

The details

About 45 companies in Idaho operate as ESOPs, including HC Company, WinCo Foods, and Schweitzer Engineering Laboratories. HC Company recently converted to an ESOP in January to preserve its culture and reward employees while ensuring long-term leadership. Sletten Construction became 100% employee-owned in 2004 to benefit its workers and maintain company stability. The ESOP model provides employees with retirement wealth tied to the company's performance, without requiring them to contribute their own money. However, the long vesting period before employees can fully benefit can be a challenge, especially for younger workers.

  • HC Company converted to an ESOP in January 2026.
  • Sletten Construction became 100% employee-owned in 2004.

The players

HC Company

A general contracting, construction management and design build services business in Boise, Idaho that employs 80 staff.

Sletten Construction

A construction company based in Great Falls, Montana that specializes in commercial construction and has a branch in Boise.

Schweitzer Engineering Laboratories (SEL)

A company founded in 1984 that manufactures power system products and solutions, with approximately 1,350 employees at locations in Moscow, Lewiston and Boise, and 7,500 employees at 107 locations worldwide.

Dan Hayes

The president, CEO and founder of HC Company.

Bill Sharp

The vice president of Sletten's Idaho Building division.

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What they’re saying

“As the company grew, we evaluated ownership structures that would best support those priorities. The employee-ownership model stood out because it allows HC to remain independent, retain its leadership team, and reward the people who contribute to the company's success every day.”

— Dan Hayes, President, CEO and founder of HC Company

“He [J. Robert Sletten] wanted to do something for the employees to make sure that they were getting benefits out of it. It was an ownership model that bought out the existing owners of the company and basically set up a model that would just go on and hold its own in perpetuity.”

— Bill Sharp, Vice president of Sletten's Idaho Building division

“He evaluated multiple business models and chose and ESOP because the structure focused on sustainable growth and long-term relationships rather than short-term shareholder demands. And he saw the business model as a way to help employees share in the success of the company and build meaningful wealth while creating a stable, resilient company.”

— Joey Nestegard, Executive vice president of Schweitzer Engineering Laboratories

The takeaway

The adoption of the ESOP model by Idaho businesses highlights the growing trend of companies prioritizing long-term stability, employee engagement, and shared prosperity over short-term profits. This approach helps retain talent, foster a sense of ownership, and ensure the continued success of these local enterprises.