On Thursday, July 24, Bill Roark, a Huntsville resident and co-founder of Torch Technologies, appeared before the Senate Health, Education, Labor, and Pensions (HELP) Committee in Washington, D.C.

Roark spoke to the committee to share his support for the Promotion and Expansion of Private Employee Ownership Act.

The hearing coincided with the introduction of the bipartisan bill, which is sponsored by Senators Steve Daines (R-MT) and Maggie Hassan (D-NH). The bill was referred to the Senate Finance Committee on the same day.

According to Senator Daines’ official website, the bill, “…bolsters the growth of S corporations that are owned by Employee Stock Ownership Plans (S-ESOP) and eliminates barriers that businesses face in establishing a new S-ESOP or expanding the employee-ownership stake in an S corporation.”

Roark is a board member of the Employee-owned S Corporations of America (ESCA).

In his testimony, Roark said that Torch supports ESCA’s bipartisan legislation.

Roark said the bill would, “…encourage more employee ownership by providing incentives for S corporation business owners to sell to an ESOP or be acquired by an S-ESOP company when transitioning out of their business.”

During the hearing, U.S. Senator Tommy Tuberville introduced Roark to the committee.

“He’s a champion for employee ownership, and he has led multiple companies to national recognition [thanks] to his core values. As CEO of Torch Technologies, Mr. Roark implemented an employee-owned ownership program from the company’s inception with the goal of becoming a 100% S Corp employee stock ownership plan. His company achieved that goal in just under 10 years,” Tuberville said.

Although he announced his retirement in March of this year, Roark remains heavily involved with the company and serves as Executive Chairman of the Starfish Holdings Board of Directors and as a member of the Freedom Real Estate Board of Directors. Starfish Holdings is the parent company of Torch Technologies.

During the hearing, Roark shared that Torch’s current annual revenue exceeds $800 million. Roark said his company’s achievements are a direct result of being fully owned by its employees.

“The success of Torch can be attributed to our employee ownership model, which gives every employee a stake in the outcome and treats them as owners. We have recently certified as an Evergreen company, committing to remain in business for the next 100 years,” Roark explained.

Roark noted that expanding access to employee ownership could significantly improve retirement outcomes for American workers.

“This initiative would allow more American workers to enjoy the benefits and meaningful retirement savings that we at Torch have experienced through employee ownership,” Roark said.

During the hearing, Senator Tuberville took time to explore Roark’s perspective in more detail through direct questions.

One question Tuberville asked was, “How can we help on the federal level to make ESOP structure more viable for that?”

Roark answered Tuberville and said there are some areas in which the bill could be clarified, which, when completed, will help to strengthen ESOP programs.

“The ESOP is a wonderful tool and it provides stability for the employees and provides a retirement path for them as well,” Roark said.

Roark concluded his answer by saying, “I think the more that we can refine the regulations around it to encourage people to be able to do this, clear up the rules on how the evaluations are done, so that it’s clear what needs to be done. I think those would be great helps.”

As of press time, the Promotion and Expansion of Private Employee Ownership Act awaits further action from the Senate Finance Committee and has not yet been scheduled for a vote.