WesTech workers involved, rewarded

Published: Sunday, June 3, 2007 12:19 a.m. MDT
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Dr. James Larsen is now partially retired, though he serves as chairman of the board and chief executive officer of WesTech Engineering, a Salt Lake-based manufacturer of equipment for water treatment and industrial processes.

But the influence of Larsen and WesTech's founders will long remain, in a company that gives its employees ownership of the company and high levels of insight into its bottom line.

When Larsen joined WesTech in 1983, the company was a small environmental equipment firm that had difficulty going up against the large conglomerates that were its competitors.

WesTech improved its position by offering low pricing, faster deliveries and superior service, particularly for customers with special needs. In time, WesTech became a major supplier of process equipment in the United States.

The company has stayed true to its roots. In 1983, WesTech established an Employee Stock Ownership Plan to provide tax-advantaged capital to the business, as well as a mechanism for buying out the founders when they wanted to retire.

As those founders retired, WesTech's management kept the process nearly transparent to employees. Now, about 50 percent of WesTech's pretax profits are shared among employees.

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The ESOP accounts of long-term employees — of WesTech's six-person management team, four were hired as student engineers — have increased dramatically. Employees can see their impact on the company's success, which in turn increases their own financial success.

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Dr. James Larsen
Dr. James Larsen