The employee stock ownership plan (“ESOP”) is a retirement plan designed to provide eligible employees the advantages of ownership in the company. The ESOP invests primarily in stock of the company, thus giving participants in the ESOP the opportunity to participate in any increases in the value of the company stock over time. This allows the participants to share in the success of the company which their efforts help produce.
The ESOP is designed to provide an ownership interest in company stock for employees- the people who are primarily responsible for the success of the company. The ESOP is intended to provide employees with a meaningful stake in the company, future economic security and ultimately, an additional source of retirement income. The ESOP gives employees a unique opportunity to acquire an interest in company stock at no direct cost.
The success of the company depends on the teamwork and performance of all employees. At every level of job responsibility, the efforts and commitment of many individuals have created the company’s success and will continue to help Areté Associates remain a successful place to work.
With beneficial ownership, employees have a special responsibility to their fellow owners and the company. The employee’s stake in the company and its stake in the employee will significantly increase. Profitability should increase the value of company stock; good work habits, efficiency and cost control will help accomplish this goal. Of course, there are never any guarantees that the value of investments in company Stock will increase. However, the ESOP provides employees with an opportunity to influence this growth. By working efficiently and effectively, employees may help increase the profitability of the company.