Northern Tree Service Transitions to Employee Stock-ownership Plan
PALMER – Northern Tree Service Inc. announced that ownership of its businesses has been transferred to an Employee Share Ownership Plan (ESOP).
The Lazear Capital Partners team worked with Northern Tree Service management to create a bespoke solution that included employee benefits, financial flexibility and maximum tax benefits.
Founded by Walter Cambo in 1932, the company was first established to serve state and municipal tree work in Eastern Mass. Under the leadership of Paul Cambo, Northern Tree Service expanded to provide land clearing services for the ever-growing power grid in the northeast. To fuel Northern expansion, Northern Tree Service, under the leadership of Paul’s son Philip, has continued to grow and become one of the most diversified tree care companies in the industry, serving all of New England and the surrounding states.
“With the story of our employees’ commitment to the company, for me, comes a personal responsibility to develop a succession plan that will help ensure continued success, further strengthen the legacy and reward all employees who work for the future of Engage Northern Tree, ”said CEO Philip Said Cambo. “While Northern Tree had many succession plans in place, only one was the perfect solution to taking on my responsibility to the company. I am proud to say that through this newly established ESOP, Northern is now 100% employee owned. “
President Timothy LaMotte added, “The ESOP was the decision we made to maintain the company’s current direction while rewarding the 250+ employees who were so important to the company’s success. We have a very specialized and highly skilled group of professionals focused on security and integrity and we are delighted that it continues to do so. “
With the new ESOP, both Cambo and LaMotte will continue their current functions for the foreseeable future and gradually hand over operational control of the company to the next generation of executives.
Employee ownership through an ESOP is a retirement plan that enables employees to hold an interest in the company through a qualified trust. Over time, employees acquire a stake in the company’s stock for free. In practice, ESOPs encourage companies to stay in a single location and generally keep turnover down as they reward tenure with larger financial stakes.