Zachau Construction joins employee-ownership movement

Photo / Courtesy Zachau Construction Zachau Construction in Freeport announced its transition to a 100% Employee Stock Ownership Plan, or ESOP.

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By Laurie Schreiber

The employee-ownership movement continues to grow, with the latest addition of Zachau Construction in Freeport.

The 56-year-old construction management firm this week announced its transition to a 100% Employee Stock Ownership Plan, or ESOP.

“Zachau has always been about building more than just buildings — we’ve built a company centered on relationships, doing good work and doing the right thing,” said Jeff Zachau, the firm’s CEO. “Becoming 100% employee owned is a natural extension of who we are.”

Zachau joins nearly 90 companies across Maine that have adopted employee ownership, through Employee Stock Ownership Plans, or ESOPs. The companies are in over 50 communities and employ over 8,500.

Recent projects include Boothbay Regional Development Corp.’s development of a new middle-income housing complex Other notable projects include the Mercy Hospital redevelopment, L.L.Bean headquarters and the Children’s Museum and Theatre of Maine.

Zachau Construction ranks No. 6 among the largest Maine-based construction firms, with 50 employees and $96 million in revenue in 2023, according to the 2025 Mainebiz Book of Lists.

The company said the move lays the foundation for long-term stability and growth.

Founded in 1969 by Earle Zachau and had been family owned until now.

The ESOP transition does not change daily operations, leadership or how decisions are made. Earle Zachau's son Jeff will continue as CEO and Drew Wing will remain president.

“This isn’t a handoff — it’s a shared path forward,” said Wing.

Succession plan

The move to employee ownership followed years of planning, including the establishment of an advisory board and consultation with professionals and peer companies, according to a news release.

Jeff Zachau said he viewed the ESOP as the best path forward to meet a range of goals: continuing his father’s legacy, strengthening the company’s mission and culture, rewarding employees and securing long-term leadership.

“This isn’t just a transition plan. It’s an investment in our people and in the future of the company,” said Zachau. “Employee ownership, done right, will be good for the company and good for the owners — all of us.”

Under the ESOP structure, employees will participate in a retirement plan that includes ownership in Zachau Construction, at no cost to them. Unlike a traditional 401(k), the ESOP’s sole investment is the company itself. The better Zachau performs, the more value employees build in their accounts.