Arco Construction Bundle
Who Owns ARCO Construction Company?
Understanding ARCO Construction's ownership is key to grasping its strategy and accountability in the design-build sector. A major shift occurred when it became a 100% employee-owned company.
Founded in 1992, ARCO Construction aimed to make the construction process enjoyable. Its unique design-build approach and entrepreneurial model quickly set it apart.
ARCO Construction is now a multi-billion dollar enterprise with over 1,800 associates nationwide. Forbes recognized ARCO Construction Co., Inc. as #95 on America's Top Private Companies in 2024, with revenues reaching $6.5 billion for 2024. This transition to employee ownership significantly influences its governance and strategic direction, a topic explored further in our Arco Construction PESTEL Analysis.
Who Founded Arco Construction?
Arco Construction company was established in 1992 in St. Louis, Missouri, by Dick Arnoldy and Jeff Cook. Their shared ambition was to cultivate a positive construction experience for clients and employees alike, which laid the foundation for the company's distinctive design-build methodology and entrepreneurial ethos. While the initial equity distribution is not publicly disclosed, the founders' core principle was to foster a culture where leadership and ownership were accessible to key personnel, a significant departure from previous professional experiences.
| Founders | Dick Arnoldy and Jeff Cook |
| Year Founded | 1992 |
| Initial Location | St. Louis, Missouri |
Founding Vision
Dick Arnoldy and Jeff Cook aimed to create a construction company that prioritized an enjoyable process for everyone involved.
Entrepreneurial Model
The company was built on an entrepreneurial model, encouraging leadership and ownership opportunities for its team members.
Early Expansion Strategy
An 'affiliate model' was employed for early growth, allowing for strategic expansion and the distribution of ownership.
First Stock Sale
The first instance of founders selling stock occurred in 1995 with the establishment of ARCO Design/Build in Atlanta.
Key Early Partner
Rick Schultze, who became a founder and co-chairman of ARCO Design/Build, was instrumental in this early expansion.
Leadership Development
The company's structure was designed to empower leaders with ownership, fostering a collaborative and incentivized environment.
The early history of Arco Construction company saw a significant strategic move in 1995 with the creation of ARCO Design/Build in Atlanta, Georgia. This expansion was spearheaded by Rick Schultze, who assumed the roles of founder and co-chairman. This pivotal moment marked the first time Dick Arnoldy and Jeff Cook divested stock in the company, establishing a precedent for future ownership distribution and creating partnership opportunities. Mark Mummert also joined early as the inaugural Project Manager for ARCO Design/Build, eventually retiring as CEO and currently serving as Co-Chairman. This foundational ownership structure was intentionally crafted to grant leaders equity stakes, cultivating a synergistic and motivated atmosphere that aligned with the founders' aspiration for shared control and collective success. This approach to Mission, Vision & Core Values of Arco Construction has been a cornerstone of the company's growth.
Founders and Early Ownership Details
The initial ownership structure of Arco Construction was built on the vision of its founders, Dick Arnoldy and Jeff Cook, to share ownership with key individuals.
- Founded in 1992 by Dick Arnoldy and Jeff Cook.
- Early expansion utilized an 'affiliate model'.
- ARCO Design/Build was established in Atlanta in 1995, led by Rick Schultze.
- This expansion involved the first sale of company stock by the founders.
- Mark Mummert joined early and later served as CEO and Co-Chairman.
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How Has Arco Construction’s Ownership Changed Over Time?
The ownership journey of ARCO Construction began with its founders, Dick Arnoldy and Jeff Cook, evolving into a unique affiliate and employee-owned structure. Key milestones include the establishment of ARCO Design/Build in 1995 and ARCO National Construction in 2000, paving the way for a significant shift in how the company is owned and operated.
| Event | Year | Impact on Ownership |
| Founding | Pre-1995 | Initial ownership by founders |
| Expansion via Affiliate Model | Ongoing | Key leaders offered ownership stakes |
| ARCO National Construction Established | 2000 | Further expansion and potential for new ownership structures |
| ARCO National Construction & ARCO Design/Build became 100% Employee-Owned (ESOP) | 2019 | Transition to employee ownership for major entities |
| ARCO/Murray Construction Company became Employee-Owned (ESOP) | 2022 | Expansion of employee ownership across the group |
The transformation to a 100% employee-owned model through an Employee Stock Ownership Program (ESOP) in 2019 for ARCO National Construction and ARCO Design/Build, followed by ARCO/Murray Construction Company in 2022, marks a pivotal moment in the company's history. This structure ensures that eligible full-time employees become shareholders, receiving annual stock grants tied to their salaries. This directly links their financial well-being to the company's performance, fostering a strong sense of shared purpose and investment in the company's success. As a private entity, ARCO does not engage in public stock offerings, meaning there are no traditional public shareholders or SEC filings. Forbes recognized ARCO Construction Co., Inc. as one of America's Top Private Companies in 2024, reporting revenues of $6.5 billion. The primary stakeholders are now the collective group of employee-owners, guided by a leadership team that includes Co-Founder and CEO Jeff Cook, and Co-Chairmen Rick Schultze and Mark Mummert of ARCO DB Companies, Inc. This ownership model is designed to align employee interests with company objectives, promoting accountability and driving innovation.
Key Stakeholders and Leadership
The current ownership structure places the company's employees as the primary stakeholders. The leadership team plays a crucial role in steering the company's strategic direction.
- Employee-Owners: The collective body of eligible full-time associates who hold company stock.
- Jeff Cook: Co-Founder and CEO, a key figure in the company's leadership.
- Rick Schultze: Co-Chairman of ARCO DB Companies, Inc.
- Mark Mummert: Co-Chairman of ARCO DB Companies, Inc.
- ARCO Construction company founder: Dick Arnoldy, who co-founded the company.
- Arco Construction ownership details: The company operates under a 100% employee-owned ESOP structure.
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Who Sits on Arco Construction’s Board?
The governance of ARCO Construction Co., Inc. is intrinsically linked to its status as a 100% employee-owned company, meaning its board and leadership are deeply embedded within the employee ownership model. This structure ensures that strategic decisions are aligned with the interests of its associates, who are also its owners.
| Leadership Role | Name | Company/Division |
| Co-Founder and CEO | Jeff Cook | ARCO Construction Co., Inc. |
| President | Hank Bellina | ARCO Construction Co., Inc. |
| Principal/Director | Dan Larson | ARCO Construction Co., Inc. |
| Principal/Director | Scott Vogelsang | ARCO Construction Co., Inc. |
| Co-Chairman of the Board | Rick Schultze | ARCO DB Companies, Inc. |
| Co-Chairman of the Board | Mark Mummert | ARCO DB Companies, Inc. |
| CEO | Rob Steigerwald | ARCO DB Companies, Inc. |
| President | Jake Stefan | ARCO DB Companies, Inc. |
As an employee stock ownership plan (ESOP) company, ARCO Construction's voting power is designed to reflect its employee-owners. While specific voting rights per share are not publicly detailed, the ESOP framework inherently grants employees a stake and a voice in the company's direction. The absence of public proxy battles or activist investor involvement is characteristic of private, employee-owned entities like ARCO, where governance prioritizes internal alignment and the collective ownership mindset to foster performance and uphold company values. Understanding this structure is key to grasping the Competitors Landscape of Arco Construction.
Key Aspects of ARCO's Governance
ARCO Construction's board and leadership are integral to its employee-ownership model.
- Leadership roles are held by individuals deeply involved in the company's operations.
- The ESOP structure empowers employees as stakeholders.
- Governance focuses on internal alignment and shared ownership principles.
- No public proxy battles indicate a stable, internally managed structure.
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What Recent Changes Have Shaped Arco Construction’s Ownership Landscape?
Over the past few years, the company has solidified its commitment to a 100% employee-owned structure, a significant evolution in its corporate identity. This expansion of the Employee Stock Ownership Plan (ESOP) across more of its operations marks a key development in its ownership trends.
| Year | Revenue | ENR Ranking (Top Design-Build Firms) | ENR Ranking (Top 400 Contractors) |
|---|---|---|---|
| 2022 | $3.7 billion | N/A | N/A |
| 2023 | $5.7 billion | N/A | N/A |
| 2024 | $6.5 billion | #4 | #17 |
Recent leadership changes have been implemented to ensure continued strategic direction. In February 2023, Rob Steigerwald was appointed CEO and Jake Stefan became President of ARCO DB Companies, Inc. This transition follows the retirement of Rick Schultze, who remains as Co-Chairman of the board alongside Mark Mummert. These appointments reflect a planned succession, ensuring leadership continuity and a focus on the company's strategic objectives.
Revenue Growth
The company reported significant revenue increases, reaching $6.5 billion in 2024. This demonstrates strong market performance and demand for its services.
Industry Recognition
The company secured the #4 spot on ENR's 2024 list of Top Design-Build Firms. It also ranked #17 on ENR's Top 400 Contractors list.
Strategic Expansion
In February 2024, a dedicated Self-Storage Division was formalized. A Capital Projects division was launched in July 2025 to address renovation and retrofit demands.
Market Demand
Industry trends, including onshoring and supply chain focus, are driving demand for manufacturing and distribution spaces. This aligns with the company's core sectors and contributes to its sustained financial performance.
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