Brown said that while the sale would raise capital, which recently was said to be an issue at the $350 million agency, that was not the goal of the disbursement.
EPB until recently sought about $2.5 million in capital investment from outside sources, a plan that is now apparently inactive. "I don't think we are looking at that anymore," agency president Mark Goldstein said of the search for outside capital. "Jeb knows who he wants to be stock holders."
"We are trying to have some more senior managers have a stake in the management," said Brown. "Getting broader ownership is a smart thing to do. It gives (managers) a greater reward with the growth and performance of the company."
Brown declined to discuss the details of the deal, but sources said that more than 20 top executives were approached personally by Brown, who suggested that each purchase 100 or so shares. While details of the offering were being determined-including the final price of the shares--the current plans are for the stock to offer a guaranteed minimum return that would be superior to that offered by standard financial institutions.
EPB executives seem fairly enthusiastic about the offer. As one put it, "Why should I park my money in (a stock) I have no control over? Here I can have an effect on the performance."
Copyright Adweek L.P. (1993)