In a landmark announcement, Chandler-based Kovach Enclosure Systems unveiled its transition to an employee-owned company through the establishment of an Employee Stock Ownership Plan (ESOP). This significant development was celebrated during an all-company event at SOHO63 in Downtown Chandler, marking a new chapter in Kovach’s rich history.
Kovach’s announcement also was commemorated by Arizona Gov. Katie Hobbs by designating November 7, 2024 as “Arizona ESOP Day” in an official declaration signed by Gov. Hobbs and Arizona Secretary of State Adrian Fontes in celebration of this announcement for the large East Valley construction employer. The declaration states, in part, “The State of Arizona recognizes the value of ESOPs in creating sustainable business practices and promoting equitable economic opportunities for its residents; and will acknowledge the contributions of ESOP companies, their employees, and the positive influence of employee ownership on the state’s economic landscape.”
With over 310 employees and a presence across eight states, Kovach has played a vital role in the Arizona commercial construction sector for more than five decades, specializing in intricate building facades and delivering award-winning projects. Kovach has a remarkable history of growth, completing projects across the country and expanding its manufacturing capabilities to 125,000 square feet.
The transition to an ESOP aligns with Kovach’s ongoing commitment to community engagement and philanthropy, as the company continues to support various local initiatives and nonprofit organizations. From providing volunteer opportunities to partnering with organizations like ICAN AZ and the American Red Cross, Kovach embodies the spirit of giving back to the community.
“As for our future, there has never been a better time for Kovach to reinvest in our people and our futures,” said Kovach President Brad Wright at the all-company event. “I am thrilled to announce that Kovach Enclosure Systems is now a 100% Employee Stock Ownership Plan—an ESOP company. What does that mean? It means that from this day forward, each of you will be more than just an employee. You are now an owner of this company.”
Founded in 1970 and headquartered in Chandler, Arizona, Kovach has grown into one of the nation’s largest integrated designers, manufacturers, and installers of high-quality panel and glazing systems for commercial building enclosures. This success is underpinned by a leadership philosophy that prioritizes continuous training and professional development, ensuring the team stays at the forefront of industry advancements.
Kovach’s core values—Positivity, Own It, Expertise, and Grit—are the foundation of its vibrant company culture. The mission to cultivate a thriving environment where all associates can flourish reflects the company’s commitment to not only robust financial growth but also the well-being of every team member. This dedication has made Kovach a recognized “Great Place to Work®,” with a strong emphasis on safety and employee development.
“For our company, becoming an ESOP means Kovach’s future is in the hands of the people who care most – You,” Wright told his team during the announcement. “It’s not some outside investors or corporate stakeholders far removed from what we do every day. It’s the people who are here, putting in the effort, and making things happen. This shared ownership aligns our interests and makes us stronger as a team.
“This shift to an ESOP also sets up Kovach for long-term tenure and stability. By making each of you an owner, we’re securing the longevity of the company. We’re making sure that Kovach remains an independent, people-first business for generations to come.”
Throughout its history, Kovach has maintained a sharp focus on quality, innovation, and customer satisfaction. The new ESOP will not only enhance employee engagement but also leverage the collective expertise of Kovach’s dedicated workforce, further driving the company’s mission to deliver the highest quality panel and glazing systems nationwide.
In addition to fostering a supportive work environment, Kovach’s internal Employee Advisory Committee meets regularly to encourage open communication and gather feedback on company culture, ensuring that every voice is heard and valued.
As Kovach embarks on this exciting new journey as an employee-owned company, it reaffirms its commitment to excellence in every aspect of its operations. The ESOP represents a bright future for both the company and its dedicated employees, who are poised to shape the next chapter of Kovach’s legacy together.
Speak Your Mind
You must be logged in to post a comment.