Are there other companies that have an ESOP?
Yes, there are about 10,900 ESOP plans employing more than 13 million U.S. employees. ESOP companies are diverse; there are ESOPs in almost every industry, and they range from just a few employees to over 150,000.
Do employess have to contribute anything to the ESOP?
No, the ESOP is an employer sponsored benefit plan that is funded entirely by contributions from the company.
How and when is the value of the shares determined?
Each year, a valuation must be performed by an independent appraiser to determine the Fair Market Value of the stock. The key valuation drivers include the Company itself (history, character, talent, and philosophy), the Company’s financial performance and forecast, the competitive marketplace, and the general economy and capital markets.
To learn more about ESOP companies, please visit The ESOP Association and the National Center for Employee Ownership websites.