From Bob’s Desk: Elm’s new chapter is just beginning

By Bob Bacon

I was asleep when the phone rang—it was about 2 a.m. on May 4, 2000. Bob Schmidt, the founder of Elm, was in surgery at Baystate. He had passed out and was taken by ambulance. We joined his family at the hospital, but his prognosis was not good. He had suffered a subdural hematoma and never regained consciousness. Bob passed away the next day at the age of 63.

Bob had just returned from Florida, where he spent most of his winters, leaving us to run Elm in his absence. His death was sudden. Only hours before, I had been with him at the office. He told me he had “the worst headache of his life” and planned to head home soon.

And just like that, I found myself overseeing a 28-year-old company with about 50 employees and $9 million in sales. It was a shock, but I wasn’t alone. We had a great team in place, and thanks to a stock purchase plan started in 1995, I already owned a fair portion of Elm. We had a plan in place, for which I’m grateful.

I owe a great personal debt to Bob Schmidt for bringing me into the business. Bob and Elm taught me the trade and the ins and outs of running a company. The opportunities I’ve had here have shaped my career. Much of Elm’s culture and drive comes from him, and there’s hardly a day that goes by when I don’t rely on something he taught me.

The new ownership plan we’re putting into place is the right move for Elm. It’s our hope to pass this opportunity on to all of you, so that Elm continues to thrive. Our workforce sets us apart, and by becoming an employee-owned company, we’ll be better able to attract and retain talent. This will make us more productive, safer, and more dedicated. Our clients will see us as a stable partner and recognize the quality of our work and the commitment of our people. Selling Elm to someone outside the company wasn’t going to happen. The shareholders had no interest in that, and the tax benefits of being 100% employee-owned will make us financially stronger. Had we remained under traditional shareholder ownership, Elm’s financial strength would have been stretched.

Over the 30 years I’ve owned my stake in Elm, its value has grown substantially—tenfold in that time. While past performance doesn’t guarantee future results, there’s a big opportunity for all of you to help propel Elm’s growth and success into the future. It took me six years to buy into Elm, and it will take me several more years to fully transition out. Your shares, on the other hand, are earned—not purchased—and when your time comes to leave Elm, the ESOP will be there to buy back your shares. This new chapter for Elm is just beginning, and it has no expiration date!