Saturday October 31, 2020

Al. Neyer Celebrates National ESOP Month

An ESOP (employee stock ownership plan) is an employee benefit plan that provides employees with ownership shares in the company. This has huge meaning for us here at Al. Neyer; we have been an employee-owned company since 2014 and we take pride in being personally invested in every project and task. It is something that not only drives our success but really bonds our team together across our growing footprint.

Our team celebrated National ESOP Month throughout October with virtual activities, calls-to-action, and special events. A big thank you to our internal committee for hosting such a great month-long celebration – Jeanne Brauns, Adam Butcher, Cheri Keay, Michael Loughman, Kim Marshall, David Morner, Emma Moorehouse, Kat Neunaber, David Okun, Justin Parker, Lauren Petrakis, and Andrea Schramm!

About ESOPs

Esop.org is a nonprofit membership organization that provides unbiased information and research on broad-based employee stock plans.

Companies set up a trust fund for employees and contribute either cash to buy company stock, contribute shares directly to the plan, or have the plan borrow money to buy shares. If the plan borrows money, the company makes contributions to the plan to enable it to repay the loan. Contributions to the plan are tax-deductible. Employees pay no tax on the contributions until they receive the stock when they leave or retire. They then either sell it on the market or back to the company. Provided that an ESOP owns 30% or more of company stock and the company is a C corporation, owners of a private firm selling to an ESOP can defer taxation on their gains by reinvesting in securities of other companies. S corporations can have ESOPs as well. Earnings attributable to the ESOP’s ownership share in S corporations are not taxable. In other plans, approximately 800 employers partially match employee 401(k) contributions with contributions of employer stock.

A 2000 Rutgers study found that ESOP companies grow 2.3% to 2.4% faster after setting up their ESOP than would have been expected without it. Companies that combine employee ownership with employee workplace participation programs show even more substantial gains in performance. A 1986 NCEO study found that employee ownership firms that practice participative management grow 8% to 11% per year faster with their ownership plans than they would have without them. Note, however, that participation plans alone have little impact on company performance. These NCEO data have been confirmed by several subsequent academic studies that find both the same direction and magnitude of results.

Be sure to check out more on esop.org. Its companion site, esopinfo.org, also explains how an ESOP works for both the owner and the employees and shares a lot of great visuals!

Al. Neyer’s ESOP Celebration

Throughout the entire month of October, Al. Neyer employee-owners were engaged in ESOP fun and education. Under the leadership of our internal committee, our team participated in a pumpkin decorating contest, a virtual “talent show” and interest showcase, a creative team scavenger hunt, photo submissions, and food donation drives in each of our four markets. Our team also participated in company-wide trivia and education about our ESOP program.

In addition, employee-owners enjoyed prizes and giveaways including “Better Together” baskets compiled with items from other employee-owned companies as well as additional popular gift packages.

Join the Al. Neyer Team

We pride ourselves on a culture that inspires, challenges, supports, and rewards our employee-owners. Being an ESOP plays a large part in that. Our passion is contagious, our sleeves are always rolled up, and our doors are always open to new inventive, collaborative team members. Learn more about our current openings.

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