Chandler, AZ company becomes employee-owned

The transition occurred through the establishment of an employee stock ownership plan, or ESOP. This development was celebrated during an all-company event at SoHo63 in Downtown Chandler, marking a new chapter in Kovach’s 54-year history, according to a news release.

Kovach’s announcement was commemorated by Arizona Gov. Katie Hobbs by designating Nov. 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 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 more than 310 employees and a presence across eight states, Kovach specializes in intricate building facades.

Headquartered in Chandler, it has expanded its manufacturing capabilities to 125,000 square feet.

The transition to an ESOP won’t change the company’s various local initiatives and relationships with nonprofit organizations, the release states. These include partnering with organizations like ICAN AZ and the American Red Cross.

“I am thrilled to announce that Kovach Enclosure Systems is now a 100% Employee Stock Ownership Plan — an ESOP company.” Kovach president Brad Wright said at the Nov. 7 event. “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, Kovach is an integrated designer, manufacturer, and installer of high-quality panel and glazing systems for commercial building enclosures.

Kovach’s internal Employee Advisory Committee meets regularly to encourage open communication and gather feedback on company culture.