Redmond Landscape Company Shifts to Employee Ownership Under New State Law

Nussbaum Group, a Redmond-based landscape construction and maintenance company, has transitioned to 100% employee ownership through an employee stock ownership plan. It's the first ESOP in the state this year under a new state law, Senate Bill 5096, that encourages employee ownership, according to an announcement this week.

The new law establishes the most ambitious state employee ownership program to date and includes a number of initiatives intended to create an environment in Washington that encourages and supports employee ownership, according to a news release from Nussbaum Group.

“From the beginning, I wanted to create a culture of ownership, improvement, and empowerment that results in exceptional care and exceptional landscapes for the most discerning clients,” Dale Nussbaum, founder and CEO of Nussbaum Group, said in the release. “Employee ownership institutionalizes our deeply rooted company values and empowers employees to contribute even more to our continued growth and long-term success.”

The company hopes that its move to employee ownership will serve as a model for others who advocate business in service to the greater good. 

“Our company and reputation are built by our people,” Nussbaum said. “So, it just makes sense that the people our clients trust to construct and maintain their absolutely exceptional landscape now own the company. We are extremely proud to be Washington’s first ESOP in 2024 after S.B. 5096 makes employee ownership an even more attractive option for business owners and employees alike.”

Sen. Mike Padden, R-Spokane Valley, who introduced the proposal, said in a news release last year after the bill was signed into law that employee ownership is valuable for employees and society.

“Studies have shown that when employees are happier, they stay in their job longer and they retire in a much better financial position,” Padden said at the time. “And the companies are more likely to remain in the local area.”

He added that the measure also will help maintain local businesses after a business founder retires.

The law creates the Washington Employee Ownership Program at the state Department of Commerce to offer technical support and other services to certain businesses considering certain employee ownership structures; forms the Washington Employee Ownership Commission to oversee the program; and provides a business-and-occupation tax credit for costs related to converting a qualifying business to an employee ownership structure, Padden’s release said.

As seen in 425 Business and written by John Stearns.