At age 18 in 1973, Albert “Zeke” O’Neal concluded he didn’t want to spend his life like his father, a tobacco farmer near Knightdale in east Wake County. He noticed lots of activity at a three-year-old rock quarry nearby, so he walked in and asked for a job.
The owner, John Bratton, hired O’Neal on the spot to help with construction projects. He was the company’s eighth employee.
Fifty-two years later, O’Neal still works at Wake Stone Corp., which now has about 210 staffers and five quarries. He turns 70 in April, having celebrated his 50th wedding anniversary in December. He plans to work one more year because he likes his employer and “it’s all I’ve ever done.”
O’Neal’s company loyalty is rare these days. But Wake Stone’s response is even more rare.
In September, Birmingham, Alabama-based Vulcan Materials bought Wake Stone for an undisclosed sum. Industry sources say it’s a lot more than $500 million.
John Bratton Jr. started Wake Stone in 1970 when about 230,000 people lived in Wake County. He eventually passed voting control to his three sons, Johnny, 71, Ted, 69 and Sam, 60.
John Bratton also had four daughters, who owned shares and received company dividends. He preferred that women not lead the business.
Wake Stone has thrived along with Wake County, which now has 1.2 million residents. The company mines materials used for roads and pads for factories and shopping centers.Potential buyers have targeted the company for years. Quarries are increasingly valuable because starting a new one is nearly impossible because of environmental, regulatory and zoning issues.But the economy needs rocks more than ever.
Wake Stone had a record year in 2023, with prospects for further gains. Aggregates companies are selling at peak levels. Early last year, the Bratton brothers set a target price, and agreed they would only sell to Vulcan, which they consider the industry’s premier company.
In July, Vulcan, stunned the Brattons by agreeing to their price. The public company also pledged to retain Wake Stone workers at the same pay levels.
Now, it gets interesting. The three brothers quickly agreed to share their gains with their employees as a loyalty bonus. This wasn’t a token effort. Aided by Tom Oxholm, their chief financial officer for 40 years, they agreed on a formula that totals about $70 million.
Rank-and-file workers would receive $10,000 per year of employment; foremen would get $20,000 per year; and superintendents would get $40,000 per year.
Wake Stone workers average 15 years on the job, while many have hung around for decades. Many hourly employees are receiving $200,000 to $400,000, which is distinct from their 401(k) savings.
At the Nov. 8 closing, the employees received 60% of the total payout, with the balance paid over the next three years. “We wanted to give them a reason to stick around,” CEO Sam Bratton says.
Amazingly, no one in the extended Bratton family – remember John had seven children – has complained about sharing the wealth. “I’m very proud of my family,” Sam says. “You’d think there would be some dissension, but there was none. We know each other very well. They were thrilled for everyone being able to share a moment of gratitude.”
Bratton says he hopes Wake Stone’s approach spurs thinking by other families selling their businesses. “We’re going to get a great deal of wealth and we believe it was appropriate to share with others,” he says. “My father loved philanthropy and he loved the employees and treated everyone like family.”
Zeke O’Neal says his colleagues hated to see the Brattons sell, but were shocked to learn of the loyalty dividend. “It took us all by surprise, but what they have done for us is unheard of. It has been a nice journey.” ■