2. Basics of an Employee Stock Ownership Plan (ESOP)
Hello employee owners!
The first topic of our ESOP educational series will be Basics of an Employee Stock Ownership Plan (ESOP). Today’s communication will cover what an ESOP is, how an ESOP works and why the Tanimura and Antle families decided to become an ESOP in 2017. Let’s dive in.
What is an Employee Stock Ownership Plan (ESOP)?
An ESOP is a plan that allows our employees to earn ownership of the company through company stock, simply by continued employment year after year. An ESOP is a secondary retirement plan, similar to other plans like profit sharing or a 401(k) plan.
How does our Employee Stock Ownership Plan (ESOP) work?
In 2017, the Tanimura and Antle families decided to sell part of the company to our employees, to recognize how much you are appreciated. Employees receive ownership simply by continually working for the company—no contribution of your own money is needed. Each year, the company makes a contribution to the ESOP, which is then allocated to eligible employees’ accounts. Employees gain ownership of their stock based on a vesting schedule. An employee becomes fully vested—meaning, fully owns their stock—after six years of eligible employment starting in 2017.
Each year, the company is evaluated to determine how much our company, and in turn, our stock, is worth. As your years of service with the company grow, so will the number and value of your shares. Eligible participants receive annual statements around July of each calendar year.
Why did we decide to become an ESOP?
An ESOP was a business decision as we plan for the next phase of our company’s success. Since our founding, we’ve been committed to providing a safe, happy and productive work environment for our employees; when we launched our ESOP, we took the next step in that commitment. Our business was built on partnerships and relationships with our employees, and an ESOP helps us to build upon that legacy for the years to come.
The goal of today’s communication was to provide you with a basic understanding of ESOPs. Next week, we will be learning more about ESOP Eligibility and Plan Participation. To get a head start, eligibility is the requirements that each employee must meet to participate in our ESOP. Stay tuned for next week’s communication!
1. Introducing Our ESOP Educational Series
2019 marked the third year since the creation of our Employee Stock Ownership Plan (ESOP). For those of you that were eligible for the 2017 distribution and have qualified for each of the subsequent years, you have had three (3) contributions to your stock account...
3. Participants & Plan Year Eligibility
Employees must meet certain requirements to qualify for our Employee Stock Ownership Plan (ESOP). This week, we will be covering what requirements employees must meet to participate in our ESOP. U.S. domestic employees become eligible on the first day of the Plan Year...
4. All About ESOP Vesting
In our first few communications, we learned about the Basics of an ESOP and Eligibility. This week, we will be learning about Vesting. The Company highly values its employees and their choice to invest their time and effort as part of the Tanimura & Antle...
5. Employer Contributions & Valuation
You’re eligible for the Employee Stock Ownership Plan (ESOP) and your account is growing year after year. But how do you gain more shares of stock and how do those shares increase (or decrease) in value? This week, we will learn more about how Tanimura & Antle...
6. Understanding Your Annual Statement
Once a year, you will receive a statement that provides you with an update on your Employee Stock Ownership Plan (ESOP) account. The statement will include information on your total number of Company shares, our new Value Per Share, your Total Account Balance, your...