Torch Becomes Public Benefit Corporation
Torch Technologies, Inc., a subsidiary of Starfish Holdings, Inc., has elected to become a Public Benefit Corporation. Our goal in making this change is to more deeply embed the commitments we have always had into our formal legal structure.
Becoming a Public Benefit Corporation is a significant and impactful change in the legal language which provides guidance into the governance of a corporation. As such, and in keeping with our core values and past practices, we submitted this change to a vote of our employee-owners. Delaware law only requires a majority vote of the shares to enact a change to a Public Benefit Corporation. Our employee-owners voted to approve the change at a super-majority of almost 90% for both shares and people. The level of engagement and enthusiastic support of our employee-owners for this change will result in long-term value for our customers and our communities.
The impact of this change is that we’ve now expanded the legal responsibilities of our Board of Directors. Our current and, more importantly, future Board of Directors will be required to consider what is best for our broader stakeholders – including our employee-owners, customers, and our communities. Additionally, our Board of Directors and management team will consider our long-term purpose when making strategic decisions.
Here’s a quick summary of our commitments:
- Grow our organization profitably for more than 100 years
- Create an environment that will provide financial stability for our employee-owners, allowing our owners to focus on our customers,
- Support the growth and sustainment of employee-ownership concepts, policies, and implementation
- Support and enhance the well-being of the communities in which we operate.
“We have operated in this manner since we were founded 21 years ago. This further substantiates our commitment to continue to focus on our employee-owners and the communities where we do business; this is what Don Holder and I had in mind when we started the company”, says Bill Roark, Starfish CEO and Co-Founder of Torch Technologies. “We are proud to be one of the first Defense Contractors in the nation to be a Public Benefit Corporation”, says Brad Walker, President of Torch. “We take pride in leading the way in taking care of our employee-owners, customers, and communities”, says John Watson, President of Starfish.
About Public Benefit Corporations: Unlike conventional corporations, whose primary interest is maximizing shareholder value, public benefit corporations are required to balance stakeholders' interests, the interests of those who are involved and affected by the corporation (such as employees and customers), as well as the advancement of their intended public benefits such as supporting our community and the organizations that make it a better place to live. Find more information at https://en.m.wikipedia.org/wiki/Benefit_corporation.
About Torch Technologies: Founded in October 2002, Torch Technologies, Inc. (Torch) is a 100% employee-owned EvergreenTM ESOP company dedicated to quality technical services, competitive costs, and ethical business practices. Torch has received both national and local recognition for its business performance, workplace environment, and ethical business practices. In 2020, Torch became the only four-time recipient of the Better Business Bureau’s Torch Award for Business Ethics in the North Alabama region. Torch was recognized as the 2021 ESOP Company of the Year by the New South Chapter of The ESOP Association for a second time, with previous recognition in 2018. Additionally, Torch was selected as a recipient of the 2021 James S. Cogswell Outstanding Industrial Security Achievement Award by the Defense Counterintelligence and Security Agency (DCSA). Washington Technology also listed Torch in its annual “Top 100” Government Contractors ranking for the ninth consecutive year, and Bloomberg Government listed Torch in its annual “Top 200” ranking for the sixth consecutive year in 2022. Torch was named one of the “Best Workplaces in Colorado Springs” by The Colorado Springs Gazette for the second consecutive year in 2021 and selected for the Colorado Springs Business Journal “Best in Business” award for the second consecutive year in 2022. Most recently, Torch was named one of the Best Workplaces in Consulting & Professional Services for the seventh consecutive year by Great Place to Work, and Great Place to Work and Fortune named Torch one of the country’s Best Workplaces for Millennials for the fourth year. For more information, visit the company’s website at www.TorchTechnologies.com
About Starfish Holdings: Starfish Holdings is a parent company that was established to oversee subsidiaries, and currently has three subsidiaries: Torch Technologies, Inc., Freedom Real Estate & Capital LLC, and SIMVANA LLC. For more information, visit the company’s website at www.StarfishHoldings.com