Mike Kelly tours employee owned companies in Butler County
CRANBERRY TWP — Cindy Austin was 26 years old and looking for a job when she found Nicklas Supply in the newspaper.
Thirty-four years later, she is one of the many owners of the company in Cranberry Township, which opted into an Employee Stock Ownership Plan (ESOP) a few years ago.
ESOP is an “employer-sponsored benefit plan that gives employees an ownership stake in the business where they work,” according to the National Center for Employee Ownership website.
“The trade-off is the business is given to the employees over several decades,” explained Dan Zugell, executive vice president of Business Transition Advisors. “And when they retire, the company cashes out shares that they had in their name and they can enjoy a comfortable retirement.”
“I didn’t know what I was getting into, but this company has been a family to me,” said Austin. “I have no intention of going anywhere else, except retirement.”
Nicklas Supply’s splash kitchen bath home showroom was one of the three ESOP companies in Butler County U.S. Rep. Mike Kelly, R-16th, toured on Friday afternoon, along with Penn United Technologies in Jefferson Township and FBC Chemical Corporation in Adams Township.
Kelly was accompanied by Kim Geyer, Butler County commissioner; Mark Gordon, Butler County planning commission chairman; Mark Nicklas, president of Nicklas Supply and Zugell.
Kelly referred to employee owned businesses as a “common sense approach” that structures a business so employees go to work with a higher level of investment.
“The success of the company is their success also, as opposed to ‘it's just a job.’ And it’s really rewarding,” he said.
In 2025, Kelly introduced H.R. 3105, which mainly aims to “expand the availability of employee stock ownership plans in S corporations.” Kelly said he has been working on the effort for several years and has faced challenges legislatively.
“We can get things through the House (of Representatives), but when it goes to the Senate things get held up,” he said.
“(Kelly) is a big supporter of employee ownership because he believes that when employees share in the wealth of the company, it’s good for communities,” Zugell said.
Zugell said there are several federal tax benefits in place for ESOP corporations like Sheetz, Guttman Energy or Wawa.
Geyer said the tour has been a great opportunity to explore ESOP companies within the county. She said ESOP companies are generally more personal than other businesses tend to be.
“And that’s coming from someone who came from a family business,” she said. “All three sites have been so impressive, not just by what they provide and do for the community and the county and region at large, but just what their core beliefs are.”
She said ESOP is a good model for future economic growth, with many long term benefits.
Nicklas described ESOP as a “great vehicle” for the employees of the 70-year-old company started by his father. Nicklas said the program has yielded positive results for the company in regards to employee retention.
“Not only do they get a paycheck, but they get stock. And that stock, over time, grows astronomically into a successful business, which they're a contributor to,” he said.
“It couldn’t have worked out better,” he said. “Overall, it has become very beneficial.”
“I think it’s wonderful,” Austin echoed. “And part of the reason why I stay is because it's family oriented.
“I love their core values,” she said.
