Labor Day is more than just a day off—it’s a celebration of the values that have shaped the modern workplace: fairness, dignity, and the belief that every worker deserves to share in the prosperity they help create. These principles, born from the labor movements of the late 19th century, have always been at the heart of Labor Day. But at Chatsworth Products (CPI), they’re also at the core of who we are.
Since our founding in 1991, we have been an employee-owned company, guided by the conviction that when employees have a stake in the business, everyone wins. Through our Employee Stock Ownership Plan (ESOP), every team member is not just a contributor but an employee-owner, directly benefiting from the company’s growth and success.
In this blog post, we’ll explore how ESOPs don’t just honor the spirit of Labor Day—they advance it.
The Spirit of Shared Prosperity
At CPI, our Employee Stock Ownership Plan (ESOP) ensures that every team member becomes an employee-owner, receiving stock allocations that grow in value as the company succeeds once they meet the requirements of the plan. This concept of shared prosperity is deeply rooted in the origins of Labor Day – born from the idea that workers should share in the prosperity they help create.
When our team drives innovation—whether by launching a new product or finding cost-saving solutions—it’s not just the executives who see the rewards. Every employee-owner benefits, with their contributions directly reflected in their growing ownership stake. This ensures that the hard work of every individual is recognized and rewarded, truly embodying the spirit of shared success.
Building Careers That Last
Labor Day's roots are also planted in the quest for job security—a vital need that remains just as relevant today. At CPI, we believe that job security is strengthened by a sense of ownership —an idea that transforms the traditional employee-employer relationship into something much more powerful: a true partnership.
When the company thrives, so do the employee-owners, creating a strong incentive to stay, innovate, and excel, resulting in a more stable and secure work environment.
A 2020 study conducted by Rutgers University revealed that ESOP companies offered exceptional job security for their employees during the pandemic. The findings showed that “employee-owned companies retained workers at significantly higher rates during the pandemic.” In our shared ownership model, decisions are driven by a commitment to the long-term well-being of our workforce, ensuring that employee stability remains a top priority.
Empowering Financial Futures
ESOPs offer more than just a paycheck—they provide a pathway to long-term financial stability. As employee-owners, our team members are building equity in the company over time, essentially investing in their own financial future.
Our ESOP also serves as a robust retirement savings tool, offering a reliable source of income that grows with the company’s success. A 2023 survey highlights this advantage, revealing that employees in ESOPs enjoy far greater retirement security, with a median account balance of $80,500 compared to $30,000 for those in non-ESOP settings. The ESOP model provides peace of mind, knowing that retirement is tied to the ongoing prosperity of the company they help build.
A Path to Shared Success
Ownership means more than financial rewards—it’s about seeing your ideas and hard work come to life, driving the business forward. In our ESOP structure, employees aren’t just participants; they’re decision-makers, ensuring that the voices of those on the front lines help guide the company’s direction.
This involvement fosters a culture of collaboration, where everyone is motivated to innovate, and go the extra mile. When everyone has a piece of the pie, everyone is invested in making it as good as it can be.
A Bright Future for Workers and Businesses Alike
Employee ownership, once a distant dream, is now a reality that reflects the core values workers have fought for over generations. ESOPs are the modern evolution of these ideals, giving workers the opportunity to take control of their financial futures, strengthen communities, and build resilient businesses that contribute to a more prosperous and just society.
As we look ahead, the rise of Employee Stock Ownership Plans is transforming workplaces into more inclusive and equitable environments. Since the 1970s, the number of ESOPs in the United States has grown from fewer than 1,000 to approximately 6,600 in 2023, empowering over 14 million employees.
This Labor Day, we celebrate not only the historic achievements of workers but also our ongoing commitment to valuing, empowering, and supporting our employee-owners every day.
Curious about CPI’s culture or what it’s like to work for an employee-owned company? Learn more how we empower our team explore career opportunities on our career page.