Employee Stock Ownership Plan (ESOP)
An Employee Stock Ownership Plan (ESOP) is a retirement plan in which a company contributes its stock to the plan for the benefit of the company’s employee-owners. Each employee-owner has an account which is maintained by the ESOP. In 2014 Steel-Pro Incorporated was purchased by the employees and was converted from a privately held company to an ESOP company. Each year a set number of shares of company stock is released and dispersed to the accounts of the employee-owners. The longer the employee-owner works for Steel-Pro the more shares they accrue. The value of this benefit is paid to the employee-owner when they retire or leave the company.
What is the Impact of an ESOP on the Employee Owners?
The most obvious impact is the addition of a retirement benefit that is given to the employee-owner at no cost and is supplemental to our 401(k) program. Behind the scenes there are a lot of changes that impact the employee-owners in positive ways. As an employee-owned company Steel-Pro has seen vast improvements in safety, product quality and company culture. This starts at the top with management’s enthusiasm and commitment to the success of the ESOP and trickles down to the employee-owners who now have a stake in the success of the company and a new sense of pride and empowerment in their work.
What is the Impact of an ESOP on our Customers?
There is a direct correlation between the positive impacts an ESOP company has on its employee-owners and customers. Employee-owners have a heightened sense of accountability and know they have a voice, this can lead to inventive solutions to difficult design or fabrication problems. There is an elevated level of teamwork that helps improve company safety and product quality. These and many other important characteristics of our ESOP company lead to quality products at competitive prices conducted within a safe working environment. Profits are put back into the company to improve the employee-owner’s work place and the tools and equipment they use so that we can better serve you. At Steel-Pro we know that our customers are just as important to us as the employees, so when you speak to us you will be treated like an owner!