Yellowhammer Times

U.S. Senator Tommy Tuberville (R-AL) introduced Bill Roark of Huntsville, Alabama, as a witness at a Senate Health, Education, Labor, and Pensions (HELP) Committee hearing focused on expanding employee ownership. The session highlighted the role of employee stock ownership plans (ESOPs) in providing stability and retirement security for workers.

During his introduction, Tuberville said, “I’m proud to introduce an Auburn man and a constituent, Mr. Bill Roark. Mr. Roark is the Co-founder of Torch Technologies Inc., Founder and Executive Chairman of the Board of Starfish Holdings, Inc., and Founder and Chair of the Board of Freedom Real Estate and Capital LLC, so he stays pretty busy. 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. Rourke 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. Torch and Mr. Roark gained national attention for being named on the inaugural list of best of America’s best small companies by Forbes. During his tenure, Torch received multiple business awards and was named the number one fastest-growing, privately-held defense contractor in the southeast region. Torch Technologies provides superior research development and engineering services to the Department of Defense. Mr. Roark recently led Torch to become a certified evergreen company, achieving its long-term commitment to 100% employee ownership and its pledge to remain privately held to ensure enduring stability and opportunity for its workforce. This milestone came as Torch celebrated its 20th anniversary.

A true believer in company culture and employee well-being, Mr. Rourke has prioritized top-tier benefits and working conditions throughout his career. Mr. Rourke also founded Starfish Holdings Incorporated, a holding company that provides beneficial ownerships to employees across all its portfolios through an ESOP structure. Starfish Holdings companies now include Torch Technologies Inc., Freedom Real Estate and Capital LLC, and SIMVANA [LLC]. Mr. Roark has a proven track record with a common denominator of building companies where employees can thrive, retire with dignity, and find lasting purpose in their work.

Thank you for being here today, Mr. Roark.”

Tuberville asked about workplace security under ESOP structures: “Important topic. Mister Roark, it’s got to be pretty mind calming to know if you work in an ESOP and you have some of the owners exit the company that everybody’s not gonna lose their job. So, what kind of security does an ESOP structure have for all employees? What that you’ve seen? Some examples.”

Roark responded by describing succession planning efforts: “Well, you know, we work real hard to build a succession plan in that it prepares our employees as people retire to step forward. You know, that is a challenge. One of the biggest challenges we’ve had is the success of the ESOP has led to people retiring early, so we have to work that problem a little harder and be training people ready to step into the role. The departure of employees that are retiring actually creates lots of opportunities for the other employees to accelerate in their careers quicker. So, a successful ESOP actually creates a lot of successful careers.

It also creates the ability for employees to retire with dignity... Jim Deal, one of our retiring employees seven or eight years ago, he says ‘Tell them how much you helped us retire with dignity.’ That is to me the essence of why I wanted to do this... When I started this company at the core of what I wanted is I wanted people to retire with dignity... With the ESOP I get lots of hugs... This is a different way of doing business... Was that respected? No... I hope that answers your question Coach.”

Tuberville then asked how federal policy could better support ESOP structures: “So how can we help on the federal level to make ESOP structure more viable for that?”

Roark suggested regulatory improvements: “No... There’s lots of ideas being proposed here in several these bills... making this easier... clearer in what we’re supposed to do... For us in last few years we’ve been in position where we could contribute more than maximum allowable... If limit is at 25%, I can only give 25%. If it were higher we would have given higher including this year... The ESOP is wonderful tool... So I think more we can refine regulations around it encourage people able do this clear up rules on how evaluations are done so clear what needs be done I think those would be great helps.”

Senator Tuberville concluded by thanking Roark for his participation.

Senator Tuberville serves on several Senate committees including Armed Services; Agriculture; Veterans’ Affairs; HELP; and Aging.