As ESOP-tober comes to a close, we would like to wrap it all up with a few more pieces of information about Employee Stock Ownership Plans!
- Eligibility for vesting is 1000 hours worked in previous calendar year, which allows rights to shares with full vesting after 6 years (or age 65, or death).
-Employee owners are Beneficial Share Owners, meaning they do not have voting rights.
-Current shares outstanding is 750K. New shares contributed to the plan will be based on the annual company valuation and profitability of previous year.
-BKD is our TPA (Third Party Administrator); Husch is our legal representation; Board members: Doug Schukar, Linda Pring, Ron Mueller, Andrew Friedman, Larry Potashnick.
- Value of the shares and plan is determined via the following process/timeline:
- DAS Annual Audit (30-60 days) scheduled for January and early February.
- Valuation firm reviews the audit details to determine the value of the company and plan (45 days)
- The Trustee (Lance Studdard) and BKD review and approve the valuation report to create employee statements (30-45 days) to be available on/about June annually.
- The ESOP is exempt from Federal and MO taxes; however, employees’ tax liability is still in place.
Besides solving the issue of ownership continuity, our ESOP has changed how employees approach their jobs: “It not only benefits your people, it’s empowering them,” CEO Doug Schukar said when the program was first introduced to the company!