Dolese donates most of its company stock to OSU, OU & KSU foundations in unique partnership

The university foundations, as nonvoting majority shareholders, each hold $70 million in stocks that the company annually buys back to increase the schools' engineering students.
by Paula Burkes Modified: October 8, 2013 at 12:00 pm •  Published: October 7, 2013

“It's helping us make the whole supply chain run,” Patton said, “and strategically, over many years, will help us meet the need of graduating more engineers.”

Roger Dolese, former president and son of a co-founder of the company, finalized the charitable partnership in 2001, a year before his death.

Helm said Dolese's vision was to keep the company privately owned, to avoid jobs being moved out of Oklahoma, and to avoid a large estate tax bill.

“He felt like if the company sold, it could lose its values of honesty and integrity, and being fair with employees and customers,” Helm said.

Dolese employs about 1,100, nearly all in Oklahoma.

Since an employee profit-sharing plan was established in 2003, the company annually has set aside an amount equal to 20 percent of employees' salaries, said Bill Schlittler, Dolese's chief financial officer.

When Dolese finalized his succession plan, Schlittler worked for its outside accounting firm that helped develop it.

“Dolese likes to keep its affairs private, so we kept a veil of secrecy over the company's identity until we knew our partners understood the concept and were interested,” he said. “I'm not aware of another private company our size that has done this.”

Schlittler said the Internal Revenue Service, in its audit of the Dolese estate, initially rejected the plan, and wanted to include the value of the company in his estate.

“It's like a very long-term annuity,” he said. And, if all goes as planned, Dolese, in a century or so, will be 100 percent employee-owned, he said.

The company's current employees couldn't be more pleased.

“I'm proud to be a part of something that will go on forever,” said Kay Martin, an executive secretary who's worked at Dolese 29 years and attended OU.


by Paula Burkes
Reporter
A 1981 journalism graduate of Oklahoma State University, Paula Burkes has more than 30 years experience writing and editing award-winning material for newspapers and healthcare, educational and telecommunications institutions in Tulsa, Oklahoma...
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