![]() Wall is one of more than 1,200 former workers who shared a $25 million settlement in 2018 - a fraction of their actual losses, according to Wall and some others - to settle accusations that the company cheated them out of company stock they were saving for retirement. A 2020 story in The Philadelphia Inquirer reported on some employees’ allegations that they were forced to sell their shares at a discount back to the controlling Wood family so the latter could maintain control of the company. More recently however, there has been controversy related to Wawa’s ESOP. Owners can sell all or part of the company and retain a role going forward for some time if they like, so it is ideal for many people.” The company uses future pretax profits to fund the sale, the seller can get a tax break, and the employees end up as owners without using their own funds. “ESOPs provide a highly tax-favored way to transfer ownership. According to Corey Rosen, an expert on the plans that was quoted in a story favorable of Wawa’s ESOP: There are also additional benefits to Wawa, in that ESOPs provide tax advantages. The company says this is a great way to motivate employees and instill in them pride of ownership. The plan is available at no cost for qualifying employees 18 years or older. To participate in the plan, employees must work for Wawa for twelve months and work a minimum of 1,000 hours per year. According to the company, Wawa’s ESOP is in the top 10 for overall participation in the country. The company highlights that more than 20,000 employees take part in the plan and the company is 40% owned by the ESOP. Wawa is known for its employee stock offering plan or ESOP, which started in 1979. Wawa’s headquarters remain in Wawa, PA today. ![]() Wawa distinguishes itself from some other convenience stores and gas station locations by offering built-to-order hoagies and breakfast sandwiches, both of which have achieved cult-like status among its loyal customer base. Today, Wawa has more than 850 locations throughout the Mid-Atlantic region ranging from Virginia to New Jersey, and added a footprint in Florida as of 2012. The company increasingly focused on dairy deliveries until that business began to decline and current owner Graham Wood opened the first Wawa convenience store in 1964. The owner, George Wood became interested in dairy farming later in the century and opened a small dairy processing plant in Wawa, PA in 1902. Wawa has its origins as an iron foundry in New Jersey dating back as far as 1803. It is also unlikely that Wawa will go public anytime soon for reasons we explain below. The only stock in the company is available exclusively for Wawa’s employees, which is held as part of their retirement accounts in an ESOP (Employee Stock Ownership Plan). Unfortunately for Wawa’s many fans, there is no way for outsiders to invest in the company. It is the 29th largest privately held company in the US according to Forbes, with $11 billion in annual revenues and about 38,000 employees. Wawa is a popular convenience store and gas station chain that is found throughout the Mid-Atlantic region and Florida, with an especially strong presence in Pennsylvania and New Jersey. Wawa employees do hold stock in the company through an ESOP plan, but their shares are not obtainable in any secondary market. Quick summary: Wawa is a privately held company, which means there is no Wawa stock available to buy through Robinhood or any other broker. The author holds none of the positions mentioned below. None of the content below should be misconstrued as investment advice or a recommendation. Disclaimer: Lean Investments is a financial education and entertainment website.
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