Millie and Severson Celebrates 80 Years

Mille and Severson is a licensed general contractor headquartered in Los Alamitos with offices serving Northern and Southern California, and the Las Vegas area. Construction projects in Long Beach have included Laserfiche’s headquarters; Long Beach Memorial renovations including Buffum Medical Pavilion and the children’s outpatient center; and it is currently part of the final expansion and build-out of the larger Douglas Park industrial development.

The general contractor firm is celebrating its 80th anniversary this year. Founded in 1945 by Noble Millie and Charles Severson, both of these men were USC engineering graduates, and they played a significant role in building Liberty Ships in Los Angeles before transitioning into the rapidly growing industrial sector.

Over the years, the firm expanded its expertise to include commercial office buildings, healthcare facilities, housing and hospitality, and cultural and educational institutions. More than 4,000 projects have been completed so far by Mille and Severson employees.

Millie passed away in 1974, and Severson started an employee stock ownership plan (ESOP) to reward non-union office workers with a viable pension plan. Today, the employee-owners hold 97% ownership as the company continues what it calls ‘Building a Higher Standard,’ encouraging employee longevity, loyalty and dedication.

In 1975, Severson’s son Jonathan joined the firm, eventually serving as president.

In 2022, Jonathan stepped down as president, passing the torch to his son, Ben Severson, who now leads the company into its next chapter.

While the general contractor firm declined to comment with the Beachcomber, it does represent a thriving, expanding part of the U.S. economy. Severson’s decision was likely connected to the Employee Retirement Income Security Act (ERISA) being signed into law by then-President Gerald Ford in 1974. This landmark legislation was considered to be a watershed moment in the U.S. for pensions and retirement security. Most importantly, ERISA also created the ESOP under federal law.

There are five employee-owned companies in Long Beach, according to the National Center for Employee Ownership. NCEO estimates there are 6,548 ESOPs at 6,358 companies, covering 14.9 million participants and holding over $1.8 trillion in assets in the U.S., using 2022 data, the most recent available. There also are 5,051 profit-sharing and stock bonus plans that are substantially invested in company stock and which can be like ESOPs in other ways, covering 842,126 participants, NCEO says.

Trucking Companies Going This Route

Several of the truck transportation and logistics companies serving the Ports of Long Beach and Los Angeles are going the employee-owned route. Truck drivers in California who get their commercial driver’s licenses (CDLs) are making up to nearly $100,000 per year, according to job-listing service Indeed, depending on how much of their lives they’re willing to give to the job. It’s not the only state with demand for truck drivers, but with the nation’s busiest port, there’s always a need for more truckers.

Long-haul trips across the country take about three days and there’s also a big demand for shorter trips that could take one-to-two days. Federal law requires that you be at least 21 to get the interstate CDL; and young Americans are a lot less interested in this demanding lifestyle as a job in recent years, according to reports. Very few women are willing to go the truck driver route, either. So going with ESOPs and other employee-owned business models has been vital for several of these companies to thrive and to keep their drivers.

Management consultants, accountants and business attorneys speak to the benefits of the employee-owned model. They say it’s a win-win, with employees having a direct interest in the company’s performance and growth; and gaining the opportunity to build on their retirement through company ownership. They usually retire with a very generous payout over a set period such as five years. Job satisfaction and engagement tend to rise when employees are directly invested in the company’s success.

Owners of employee-owned companies say they get to attract top talent. Employee retention is more likely than other management models experience because of their ownership in the company. They’re more likely to be motivated to work as a team, and individually toward the company’s success. Employees are more likely to put in the hard work, and make sure it all gets done well, managers say.

There are also tax incentives for companies that go this route, many times formed through employee-owned S corporations.

Employee Ownership Month is celebrated nationally every October to recognize the benefits employee ownership brings to employees, companies and communities. It all started in 1982 when the NCEO designated October as Employee Ownership Week. The event was later expanded to the entire month, and it’s being acknowledged by Millie and Severson and many other companies across the country.

Jon LeSage is a resident of Long Beach and a veteran business media reporter and editor. You can reach him at jtlesage1@yahoo.com.