H‑E‑B, which operates more than 370 stores in Texas and Mexico, announced that 55,000 employees would be eligible to receive a portion of stock in the company under a new employee ownership plan.

The plan commemorates the 110th anniversary of the company, which was founded and is owned by the Butt family. The family will remain the primary owners of the company. H‑E‑B anticipates that employees, which it refers to as partners, will own approximately 15 percent of the company over time.

In January 2016, eligible employees will receive a grant of stock valued at 3 percent of their salary, plus $100 in stock value for each year of continuous service completed by the end of 2015. Going forward, yearly contributions to the stock plan will be made based on company performance. To be eligible, an employee must be at least 21 years old, have completed at least one year of service and worked at least 1,000 hours in a calendar year.

This grant enhances the long‑term financial security of employees and will be offered in addition to all of H‑E‑B's existing compensation programs including a 401(k) plan that includes a company match. Eligible employees will be automatically enrolled without having to make a contribution.

"The Partner Stock Plan is a milestone and a recognition of our most important resource — our people," Charles Butt, H‑E‑B chairman and chief executive officer, said in a press release. "Our Partners are the competitive edge that brings innovation, growth, and success to H‑E‑B. This plan has been my dream for decades. It is a gift that recognizes our Partners' ongoing commitment to H‑E‑B. Our Partners shaped our past, define our present, and will lead us into the future."

Craig Boyan, H‑E‑B president and chief operating officer, said, "This historic offering reflects our commitment to our Partners and the communities we serve. We are anchored in our mission to hire the best people, offer the best service, provide the best products at budget sensitive prices, and operate our business in a way that reflects our deeply ingrained value system."

The H‑E‑B family of brands include H‑E‑B, Central Market, H‑E‑B Plus!, Joe V's Smart Shop, and Mi Tienda, with more than 370 stores in Texas and Mexico and more than 17,700 H‑E‑B Own Brand products.

H‑E‑B was founded in 1905 by Florence Butt in a tiny store in Kerrville, TX. Her youngest son, Howard Edward Butt (1895‑1990), led the company's entrepreneurial period, 1920‑1971, and the company's name, H‑E‑B, reflects his initials.

When his youngest son, Charles Butt, was named president in 1971, H‑E‑B recorded $221 million in annual sales. Today, its annual sales exceed $23 billion. Due to Butt's leadership and strong commitment to putting employees first, he ranked third on Glassdoor's Highest Rated CEOs in 2015, and H‑E‑B ranked seventh on Glassdoor's Employees' Choice Awards for 2015.