We winced when told that Tom Wolf was on the line because to take the call was to make a campaign contribution.
But it did give us an opportunity to immediately pose a question that had always concerned us about his candidacy.
What occurred when he and his partner sold their interests in the Wolf Organization Inc. and he later bought it back? Because reports had mentioned that employees had been buyers, we assumed that the transaction had been an ESOP *, acronym for Employee Stock Ownership Plan. We have known the prices for such transactions at times to have been bloated.
Wolf quickly clarified that no ESOP was involved. Employees had long before had an interest in the profits from the firm. He explained the new money had come from an equity fund that bought most of his and his partners’ ownership interest, although he stayed in for about 10%.
When the firm experienced financial trouble during the recent deep depression, he bought back into the company and once again became CEO.
With that clarified and based upon all the good things we have read and heard about Wolf, we feel enthusiastic about his candidacy.
Now we have to write a check. Ouch.
* Wikipedia: ” An employee stock ownership plan (ESOP) is an employee-owner method that provides a company’s workforce with an ownership interest in the company. In an ESOP, companies provide their employees with stock ownership, often at no up-front cost to the employees. ESOP shares, however, are part of employees’ remuneration for work performed. Shares are allocated to employees and may be held in an ESOP trust until the employee retires or leaves the company. The shares are then sold.”
