- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Coaching Changes
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
Anyone in an ESOP plan with their employer?
Posted on 9/15/23 at 7:53 pm
Posted on 9/15/23 at 7:53 pm
Can you explain how yours works specifically and if you like it?
I'm going to take a job with a privately controlled family business but it is employee owned and has an ESOP with a good reputation.
Thanks!
I'm going to take a job with a privately controlled family business but it is employee owned and has an ESOP with a good reputation.
Thanks!
8
Posted on 9/15/23 at 8:03 pm to Bronco11
So we have something they term a "grant" or "long term incentive" for management. I'm not real sure what it's called in the real world.
Every year they give you 5% of your salary in stock. I'm guessing it's thought to he a retirement benefit.
When I was with Anthem, I think they let us buy stock at a 10% discount but you had to keep it a year before selling it.
Every year they give you 5% of your salary in stock. I'm guessing it's thought to he a retirement benefit.
When I was with Anthem, I think they let us buy stock at a 10% discount but you had to keep it a year before selling it.
Posted on 9/15/23 at 9:01 pm to Bronco11
ESOP usually means you can allocate 401k directly to your company’s public stock (so instead of stashing 100% into an index, you put some into your company). Not that big a deal unless they offer a discount
ESPP on the other hand is stock options, you get to buy your company’s stock at a 10% discount or whatever each paycheck, then can cash it out quarterly. Totally separate from retirement account.
ESPP on the other hand is stock options, you get to buy your company’s stock at a 10% discount or whatever each paycheck, then can cash it out quarterly. Totally separate from retirement account.
Posted on 9/16/23 at 6:21 am to Bronco11
I’ve done both LTI (long term incentive) and ESPP.
ESPP. I buy $6000 in stock , company throw in $900 in stock for free each year. Vested from day 1.
LTI. I get (award, free) $10000 in stock each year. In 3 years it vests. If I leave, I forfeit it.
My boss? 80k, his boss? 350k, and his boss the COO, a cool million
ESPP. I buy $6000 in stock , company throw in $900 in stock for free each year. Vested from day 1.
LTI. I get (award, free) $10000 in stock each year. In 3 years it vests. If I leave, I forfeit it.
My boss? 80k, his boss? 350k, and his boss the COO, a cool million
This post was edited on 9/16/23 at 6:23 am
Posted on 9/16/23 at 7:15 am to Bronco11
My previous company started an ESOP to buy out the family owners. At the start it was separate from the matching 401k, but I would imagine it would eventually replace it. 5% of salary per year, 6yrs to be vested. When you leave you are paid out over a 6 yr period. You have to move the money to your own account or pull it out. Growth seemed about 10%/yr but I’m sure it varies.
Posted on 9/16/23 at 8:16 am to whatshisface
Ours, called Wesop, allows for you to buy shares at a 20% discount with company matching 100% up to 1600$ and matching 50% from 1600 to 2900. The cutoffs have varied from year to year. We hold for 5 year vestment period at computer share. Then since it's a woke company, I sell it and bring it home to the USA and ET.
Posted on 9/16/23 at 8:45 am to Bronco11
My company has an ESOP.
A majority share of the company stock has to be maintained by the Principal group within the company. The rest can be purchased (at a discount) or gifted to employees. I've been gifted some and am making my first purchase this year - been with the company 4 years now. The stock has a 5yr vestment period where you become 20% vested each year for stock that's gifted. Although found out recently you have to pay tax on any gifted stock when you become vested.
Seems like a great secondary retirement avenue for me. They recently went through a 4:1 split so shares have gone to $41/share (can purchase at $39/share) so I plan to take advantage.
A majority share of the company stock has to be maintained by the Principal group within the company. The rest can be purchased (at a discount) or gifted to employees. I've been gifted some and am making my first purchase this year - been with the company 4 years now. The stock has a 5yr vestment period where you become 20% vested each year for stock that's gifted. Although found out recently you have to pay tax on any gifted stock when you become vested.
Seems like a great secondary retirement avenue for me. They recently went through a 4:1 split so shares have gone to $41/share (can purchase at $39/share) so I plan to take advantage.
This post was edited on 9/19/23 at 9:21 am
Posted on 9/17/23 at 3:56 pm to Bronco11
I once had an ESOP in a family business that sold to a publicly traded company.
Here's basically how it worked.
In addition to a 6%/3% 401k match, employees can participate in an Employee Stock Option Plan (ESOP) program. The company gave us $2000 of stock every year, and we could purchase an additional $8,000 for a total of $10,000. I maxed out for three years but was only vested 60% of the match
$24,000 my money
$6,000 match - minus $2,400 for leaving early
-------------
$27,600 invested. I could have cashed out for about $35,000 when I left, but I had the option to leave it in.
About five years after I left, a publicly traded company bought the family business. I received about $60k in that company's stock.
Here's basically how it worked.
In addition to a 6%/3% 401k match, employees can participate in an Employee Stock Option Plan (ESOP) program. The company gave us $2000 of stock every year, and we could purchase an additional $8,000 for a total of $10,000. I maxed out for three years but was only vested 60% of the match
$24,000 my money
$6,000 match - minus $2,400 for leaving early
-------------
$27,600 invested. I could have cashed out for about $35,000 when I left, but I had the option to leave it in.
About five years after I left, a publicly traded company bought the family business. I received about $60k in that company's stock.
This post was edited on 9/17/23 at 3:58 pm
Posted on 9/19/23 at 10:33 am to Bronco11
Be careful if it's a certain ambulance company. As a former employee, it sounds amazing, especially when you hear the 30-year employees talk about having an ESOP that has over 1 million in it. The one major problem? The company isn't growing nearly as fast as it was 30 years ago. Those 100% gains employees sometimes saw year to year are fading away, and quickly. My last 2 years, our ESOP only saw a marginal increase in value. The tradeoff is supposedly less salary for more benefits long term, but once that ESOP stops growing financially, you are really just taking a pay cut.
Posted on 9/19/23 at 11:59 am to Pauvetibete
The business in question is a huge retailer that hasn't entered the south yet and is rapidly expanding west. Huge upside for decades. When a store opens, it's incredibly busy.
Posted on 9/19/23 at 12:15 pm to Bronco11
they can be fine or they can be bad.
Mine only grows about 2-3% per year so not great. I can't sell any of that stock until I leave the company and they put about 12% of my salary in company stock every year.
Mine only grows about 2-3% per year so not great. I can't sell any of that stock until I leave the company and they put about 12% of my salary in company stock every year.
Posted on 9/19/23 at 10:51 pm to Pauvetibete
quote:With a CEO who’s last name rhymes with “Whose Job?”
Be careful if it's a certain ambulance company.
Page 1 of 1
Popular
Back to top
Follow TigerDroppings for LSU Football News