POWAY – Two years after becoming an employee-owned company, the largest commercial mover in the western United States, Corovan Moving & Storage Co., keeps on trucking.
Established in 1948 in Coronado, Corovan transitioned to an employee stock ownership plan (ESOP) in 2022, which has proven to be a winning strategy for success.
Headquartered in Poway, Corovan serves the entire state, and is one of the busiest moving companies in Northern California, counting among its clients major universities, hi-tech companies in Silicon Valley and healthcare leaders in the Bay area.
“The share price of Corovan has increased 20% since becoming an ESOP, and more shares continue to be allocated each year at no cost to the employee,” said Corovan Moving & Storage Co. President Kim Kamencik.
President
Corovan Moving & Storage
Kamencik said the move to ESOP has allowed the company “to better secure its clients while addressing one of the most pressing economic challenges of our time,” which is income inequality.
“It’s not just the owners concerned with the bottom line. Now the profits are shared amongst the employees based on shares each year and a stock certificate investing in Corovan,” she said. “Before COVID (in 2020), the owners were thinking, ‘Who will we sell to if we sold?’ They said they wouldn’t want to sell to anybody else but the employees because, ‘The employees are what makes us great.’”
Employee Ownership Perks
According to the National Center for Employee Ownership, in 2021 (which the NCEA cites as the most recent year for which data is available), 283 new ESOPs were created, covering 36,355 participants.
The NCEA reports that there are 6,533 ESOPs in the United States, holding total assets of over $2.1 trillion. The number of unique companies with an ESOP is approximately 6,322 — 5,866 private companies and 456 publicly traded companies.
Project Equity says that some of the employee benefits of ESOPs include 33% higher median income, 92% higher household net worth and 53% longer job tenure. Employer benefits, the group says, includes 67% higher productivity, 46% longer employee retention and 8.5% higher profit margins.
Taylor Guitars, architectural firm Carrier Johnson + CULTURE, Epsilon Systems Solutions and Erickson Hall Construction are other San Diego County-based companies that are employee-owned businesses.
CEO
Corovan Corporation
“Who better to have as partners than our company employees?” said Bud Schmitz, CEO of Corovan Corporation. “The ESOP aims to help a broad scope of dedicated Corovan employees, including movers, drivers, installers, techs, administrative staff and salespeople. We want our employees to share in the success of Corovan, while the company contributes to their retirement.”
Kamencik, previously Corovan’s CFO, said the new corporate structure helps the company reward our employees, attract top talent and maintain a fair and equitable workplace.
“We are committed to continuing our legacy of excellence to both our clients as well as our employees,” she said. “We prioritize the financial well-being of our employees by ensuring they have opportunities to save for their retirement, helping them secure a stable and prosperous future.”
Starting in Coronado in 1948
The move to ESOP is not the first major transition for Corovan, which was founded more than 70 years ago by Richard T. Schmitz, when it went by the name Coronado Moving & Storage Warehouse & Supply Company.
Back in those days, Kamencik said, Corovan was strictly about household moving services and was considered the go-to mover local residents used.
Through the decades Corovan expanded and strengthened its offerings, and now has a comprehensive suite of commercial furniture and scientific equipment moving services, warehousing and storage, facilities support, IT equipment move services, and logistics and tech services for customers of all sizes and industries.
Its clientele ranges from small businesses through many Fortune 100 companies located in California and beyond.
Corovan’s team completes more than 50,000 moves annually with facilities that encompass more than 1 million square feet of storage.
Starting in 1955, Corovan expanded its business as agents for other moving companies, including North American Van Lines.
Founder Schmitz passed away and since 1994, it has been a second-generation family business operated by the patriarch’s sons, Bob Schmitz (CEO and President of Corodata, a sister operation), Bud Schmitz and Tom Schmitz (Executive Vice President of Sales, Corovan Corp.).
The Schmitz brothers had considered the transition to ESOP for several years prior to making the move, Kamencik said. They contributed to the ESOP before it started and continued to contribute for the following two years to help jump start each employee’s savings account.
Kamencik said the company is heavily investing in technology, something that takes on added importance with many of Corovan’s tech-savvy clients.
“Our tech-savvy clients keep us on our toes and command our attention to innovation,” she said. “When we meet for quarterly business reviews, some will ask ‘Well, what’s next? What is your next product?’ she said.
“They don’t necessarily appreciate the response that we’re still doing the same thing.” This creative conscious approach coupled with discipline and hard-working values has proven successful, appealing to both Corovan’s clients and its employees,” she said.
Corovan Moving & Storage (part of Corovan Corporation)
FOUNDED: 1947
FOUNDER: Richard T. Schmitz
CEO: Bud Schmitz
HEADQUARTERS: Poway
BUSINESS: Moving and storage company
GROWTH: Share price has increased 20% since becoming an ESOP in 2022
EMPLOYEES: 500+
WEBSITE: corovan.com
CONTACT: Kkamencik@corovan.com
SOCIAL IMPACT: Corovan’s Employee Stock Ownership program is a no-cost employee retirement savings account to help address income inequality, providing employees the opportunity to share in the company’s success.
NOTABLE: Company’s roots are in Coronado as the Moving & Storage Warehouse & Supply Company, which was focused on residential moving; its focus now is moving items for businesses.
