EllisDon announced on March 2 that it will transfer all of the company’s equity to its employees. The decision means that the company, which provides more than $5 billion in construction services annually, will eventually become entirely employee-owned.

Under the previous ownership structure, the Smith family held 50 percent of the company shares. From March 1 onward, EllisDon will gradually buy out the Smiths’ stake in the company while employee ownership will steadily increase to 100 percent over an indefinite period.

"I don't think I can overstate how momentous this agreement is in the life of EllisDon; it is one of the most important days in our history," said president and CEO Geoff Smith in a release. "I am very proud of everyone at EllisDon, past and present, for everything that has been accomplished over the past 69 years."

The agreement is the result of negotiations led by EllisDon's board of directors Chair, Gerald Slemko, the Smith family, and representation from EllisDon's shareholder employees.

EllisDon will continue to be governed by an independent board of directors, to whom Smith and the management team will report.

"EllisDon's share structure and independent governance will ensure that we continue to strive together for complete fairness in equity of ownership across all employees, both present and future," said Smith. “Shares will continue to be offered to employees every year and loans will still be offered on an interest-free basis. Shares will always be purchased and sold at book value, ensuring the ability of every employee shareholder to participate fully in the share value created while they are at EllisDon, and then to pass that opportunity on to future employees."

The gradual buyout of the Smith shares is intended to protect EllisDon's ability to grow and continue its tradition of innovation and leadership in the construction industry. This process could possibly be accelerated should the employees, Smiths and Board of Directors agree.

EllisDon was founded in 1951 by brothers Don Smith and David Ellis Smith. The company has since built hundreds of buildings in Canada and around the world—including CIBC Square in Toronto, the YVR CORE Program in Vancouver and the ATRIO Center in Bogotá, Colombia—and offers a wide suite of construction services.