October is Employee Ownership Month, making it the perfect time to announce that we’ve closed on an ESOP and are now employee-owned.
What Is an ESOP?
An Employee Stock Ownership Plan (ESOP) is a retirement plan that gives employees ownership in the company through shares of stock.
Why an ESOP?
We believe that ESOPs are powerful structures that provide wealth to individuals who may not have otherwise been able to obtain it, while also tying performance and dedication to reward. In short, establishing an ESOP aligns with our mission: Providing opportunities for our employees, our customers, and our community to succeed.
How It Works
Trust-Based Ownership: ESOPs operate through a trust that holds company shares for employees. An ESOP trustee oversees the plan.
Eligibility: Full-time, non-union employees who are 21 or older and who work at least 1,000 hours in a calendar year are eligible to participate after one year of service with the company.
No Cost to Employees: Participation in the ESOP is free for employees
Are you interested in learning more? Visit the National Center for Employee Ownership to discover how ESOPs work.
You can also listen to the podcast Journey to an ESOP & Beyond Episode 28, which just so happens to feature one of our owners, Marc Farrell.
In this episode. Makenzie interviews leaders from five diverse ESOP companies as they share their paths to employee ownership. Each organization offers a unique perspective on the transition process, the challenges and opportunities along the way, and the lasting impact ownership has had on their culture and performance.
