Steve Gund, third-generation CEO of The Gund Co, has overseen a family-owned manufacturing company in St. Louis that has averaged 18 percent annual growth over the past decade without conducting any layoffs. Founded in 1951 by Gund’s grandfather, Ed Gund, the composite materials firm now generates nearly $400 million in annual sales and employs approximately 1,300 workers. Its products serve major clients such as General Electric and Rockwell Automation, featuring in a range of energy infrastructures from wind turbines to neighborhood electrical boxes.
Central to the company’s success is a leadership approach prioritizing employee welfare and long-term sustainability over short-term profits. Gund, 55, has emphasized a culture of “radical transparency” and open communication, encouraging workers at all levels to raise concerns, which management promptly addresses. The company implements personal career development plans for all employees but also maintains high performance expectations, managing out those who do not align with its culture.
The company’s employee-stock ownership program is a key aspect of the business model, with employees owning 30 percent of the firm as of last year. This year, The Gund Co spent significant resources to buy back existing shares to relaunch the program globally, including in countries such as China.
Executives from over 200 companies have visited Gund’s headquarters and Midwestern facilities to study its management philosophy, especially those leading family businesses facing critical decisions about growth and ownership succession. Many seek ways to sustain growth while maintaining family control rather than selling to private equity or other external entities.
Steve Gund credits much of his leadership philosophy to a 2015 conversation with Bob Chapman, CEO of Barry-Wehmiller, another family-run enterprise in St. Louis. Chapman, known for promoting “truly human leadership,” inspired Gund to view job creation as a broader social mission linked with business growth. This shifted Gund’s focus toward fostering a workplace offering more than just employment — a place where employees can thrive personally and professionally.
The Gund Co’s management employs various practices to support this vision. Supervisors regularly engage in “Gemba walks,” visiting the production floor to solicit direct feedback from employees. Staff routinely share their career and life aspirations, integrating them into personalized development plans. The firm’s operational metrics extend beyond financial performance to include employee well-being and customer satisfaction.
One illustrative example is Deidra Jonas, who began as a janitor 16 years ago while juggling multiple cleaning jobs as a single mother. Through recognition and support within the company, she progressed to machine operator, customer service, and eventually a leadership position on the company’s culture team, now traveling internationally to facilitate employee listening sessions.
Despite the growing interest in Gund’s 12-step management program, few companies have successfully implemented all components. Gund notes that cultural transformation typically requires two to three years and committed leadership. Attempts to delegate the process often result in partial adoption and abandonment as challenges arise.
The Gund Co also publicly shares its financials and workforce information, such as salary ranges. Entry-level factory workers start with wages between $55,000 and $65,000 annually, excluding overtime and profit-sharing incentives. Over the past decade, the company’s profit margins have doubled, reflecting the financial viability of its people-focused leadership model.
Steve Gund continues to champion sustainable, mission-driven business practices that reconcile profitability with employee care, positioning his family firm as a potential blueprint for other family-run manufacturers navigating the challenges of growth and succession.