What Is an ESOP?
An Employee Stock Ownership Plan (ESOP) is a retirement benefit plan that allows employees to earn beneficial ownership in the company for which they work.
When a business becomes part of an Employee Stock Ownership Plan (ESOP), employees have a personal stake in the business because they can now earn shares in that company. This gives employee-owners a sense of empowerment and a shared vision of success.
One of the biggest differences between an ESOP and a 401(k) is that in an ESOP, the company buys shares for the employees and places them in a trust. There’s no cost to the employee. The shares are cashed out when the employee leaves. The value of the shares is tied to the performance of the company. In a 401(k), employees invest their own money. They receive cash for their investment. There is no connection between the value of the 401(k) plan and the performance of the company.
As an 83% ESOP company, SA encourages all employees to think and act like owners, continuously looking for ways to increase revenues, minimize expenses, and work to provide value for our clients and our communities.
Employee-ownership is a powerful motivator, which inspires intense collaboration, a vibrant work environment, and a big team of individuals who are all consistently looking for ways to make SA better. Through smarter processes. Better teamwork. Stronger results.
