Dive Brief:
- As part of its succession planning, Canada-based PCL Construction said Dave Filipchuk has taken over as the company's new president and CEO, replacing Paul Douglas, who will take over as board chairman, the company announced in a press release.
- Both men have been with the company for decades and have led various aspects of its building, infrastructure and heavy industrial construction operations.
- Douglas, who served as CEO for seven years, said the company views succession planning as critical to business continuity and that it is a priority at all levels of the organization.
Dive Insight:
Multimillion- and multibillion-dollar companies often see an obligation to future generations of employees, as well as to the legacy of its founders, to keep the corporate wheels turning by ensuring that there is always a deep bench of executives capable of leading the company. Along those lines, contracting powerhouse Mortenson announced in September that current CEO Tom Gunkel would retire at the end of the year, with President Dan Johnson slated to take over Jan. 1.
Other companies take a different approach to succession planning. Family-owned Boldt Construction announced late last year that it would begin a five-year transfer of majority ownership (45%) to its employees. The Boldt family will retain 30% of the 125-year-old company, and management will own 25%. Boldt expects to reach $1 billion in revenue this year, driven by its medical facility and plant construction operations, which would make the firm one of Wisconsin's largest employee-owned organizations. Oscar Boldt, grandson of the founder, Martin Boldt, said in a statement that the family felt turning the company over to its employees would ensure a continuance of its culture and values.
A similar shift in ownership occurred at Clark Construction earlier this year when a group of long-time employees, a leadership team "hand-picked" by founder James Clark, purchased the company. According to the Washington Post, the employee-owners have hands-on construction experience, a quality valued by the late owner, and are thought to be the best chance at preserving the company's legacy.
