MB: How did you explore ESOP to determine that it's truly the right way to go? We've been looking at ESOPs since 2008 — for the benefit of our employees, looking at what the succession plan might be looking ahead for the next 20 to 40 years or more.In 2008, I wasn't satisfied with [a]consultant's report. I was anxious to find a successful company in our exact line of work that had undertaken this approach to ownership. They're a construction company about the same size as us.'MB: How do you determine each employee's share of that overall value? The way we chose is to do it as a pro-rated portion of your salary versus the company's overall payroll.So an individual's personal salary percentage of the overall salary is what their percentage would be of the allocated stock.In simple terms, an ESOP is a trust that a company sets up on behalf of its employees, into which it directs a portion of its profits.
Sargent Inc.)Employees: Just under 400Revenue 2012: Approximately 0 million Contact: 800-533-1812 May 1, Herb R.
Going into this process now — as opposed to waiting 10 years — brings with it a lot of operational stability [the plan rolled out May 1]. It allows us to begin to weave this ESOP notion into the culture of the company well in advance of the change in management.
I believe it sets us on a more even keel for the future as we go forward to the eventual day when I retire.
From that point on, it was a matter of deciding whether I was satisfied with that value and then it was a matter of whether the trustees were satisfied in paying that value. HS: It's a trustee group of three people representing the ESOP trust, and I'm one of those trustees.
The trustees are charged to make decisions in the best interest of the employees and those decisions have to bear the weight of certain tests, such as, 'Can this be paid off in a reasonable timeframe?