New York-based CPA firm Grassi announced on Thursday it has established an employee stock ownership plan (ESOP) for its more than 450 employees. In addition, the top 60 accounting firm said it is shifting to an alternative practice structure “ensuring the firm’s independence and strength.”

An ESOP is an employee benefit plan that gives workers ownership interest in the company in the form of shares of stock. Grassi emphasized in a press release that its ESOP is privately funded—no outside investors or private equity firms are involved in the plan. The firm’s stock will be owned exclusively by equity partners and all Grassi U.S. employees, the firm said.

Louis Grassi

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“This is an extraordinary milestone for our firm and every team member who will now have ownership in it over time,” Louis Grassi, CEO and managing partner, said in a statement. “Each team member has helped build our firm, and they should all have the chance to be as invested in it as our partners are.

“We are dedicated to thriving together, fiercely independent, and work only for our clients and each other,” he continued. “We have a long history of redefining how things get done to be uniquely effective, and that includes how we are structuring and funding our ESOP.”

Ted Carnevale, New Jersey practice co-leader and partner at Grassi whose firm Gramkow, Carnevale, Seifert & Co. merged with Grassi in 2021, said in a post today on LinkedIn regarding the firm’s changes to its ownership and operating structure, “My objective [for the merger] was to ensure a solid future for our clients, our team, and our partners. We have had an awesome experience being part of the ‘Grassi family’ and this announcement underscores the firm’s commitment to its clients and the incredible team.”

For its new alternative practice structure, the firm announced that Grassi Advisory Group will perform all advisory and tax services, while Grassi CPAs will handle all audit and attest work.

“This strategic change in our structure provides access to a wider range of services, greater resources, and more flexibility,” Louis Grassi said. “Among other benefits, this opens the pathway for non-CPAs to become partners in the firm.

“Our team members have built this firm and our reputation by giving our clients exceptional quality, service, and care,” he added. “Keeping our firm strong and in the hands of our team members is one way we can thank them and show them we care for them, their future, and their well-being.”