Bob’s Red Mill Founder Gave the Company to His 700 Employees Instead of Selling to Corporate Giants

Believe it or not, one of the goals of most people who started a business is to be able to exit their companies by selling them to corporate giants for millions or billions of dollars. That is why people both got shocked and admired the founder of Bob’s Red Mill, who is beloved by many, when he decided to give the company to his over 700 employees, who all helped in growing the business, instead of selling to a fast food giant.

Image Credits: Bob’s Red Mill

A Legacy Rooted in People Over Profit

Bob Moore, together with his wife Charlee, is the co-founder of Bob’s Red Mill, which is a company focused on selling whole grain foods. He started the company back in 1978 and grew it to become a profitable venture that attracted the attention of large corporations.

Soon, he received lucrative offers whose amount was not specified. The reason he did not accept them was not because of the amount, but his own personal beliefs and wanting the company to carry on those values.

Read more: Business Insider

Transitioning to Employee Ownership

Bob's Red Mill founder turns 90 | This is Oregon

In 2010, on his 81st birthday, Bob started to think about the future ownership of the company. First, he knows that he is not going to sell it to a corporate giant, next is he wants the company to carry on his legacy and values. With that, the following step is clear, to give the company to the people who care about it, and have known it inside and out, his employees.

He started slow with Employee Stock Ownership Plan (ESOP), transferring over 30% of the company to his employees who have stayed there longer than most. As time passed by, Bob extended his plan, and by 2020, Bob’s Red Mill became 100% employee-owned.

One of the most unique business structures, and one that clearly works. The common theme for companies, if you are not familiar, is that they are owned by the founders mostly, followed by the investors, and a few shares for the best and highest-positioned employees. But Bob’s Red Mill was completely employee-owned now.

Sustaining Growth Through Shared Ownership

Under the ESOP model, the company grew to about 700 employees, all have stakes in the business. They offer more than 200 products across 70 countries. Their business model, because of its shared ownership, encouraged the workers to do their best and more, since they are all part owners now. They have accountability and pride in the current Bob’s Red Mill business.

Read more: People.com

Moore’s Philosophy on Business and Life

Bob's Red Mill: What it means to be an Employee Owner

Bob Moore is a Christian, and he was inspired by the bible’s teaching, saying that you should treat others as you want them to treat you. His Christian faith and values gave the business its fundamental principle of treating people with respect and fairness, especially for the job they have done to grow the company.

His actions serve as an example for many business leaders today on how to prioritize the people who are the ones helping them achieve their goals over profits.

Author's Final Thoughts

Bob Moore is not only a great business leader, but he is also an example of a good man. His choice to transition Bob’s Red Mill to employee ownership prioritized shared success over individual gains. He passed away at the age of 94 years old, on February 10, 2024, but his legacy and values will be remembered.

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