ESOP (Employee Stock Ownership Plan)
Unlocking Your Future: The SUN ESOP Advantage
At SUN Automation, we believe in the power of ownership, and that’s why we established our Employee Stock Ownership Plan (ESOP) in 2002.
The ESOP creates a direct and unbreakable link between the company’s interests and the interests of our employees. Since its inception, 100% of the company’s stock has been held in trust for our employees as a qualified retirement plan. This means that every participant has a vested interest in the results of their work and the continued success, performance, and growth of our company.
What Does the ESOP Mean for a SUN Automation Employee?
Participating in our ESOP is a pathway to prosperity. Research shows that ESOP companies outperform expectations, and at SUN Automation, our ESOP mirrors this trend. A 2000 Rutgers study revealed that ESOP companies grow 2.3% to 2.4% faster after implementing their ESOP than would have been expected otherwise. Additionally, a 1997 Washington State study found that ESOP participants accumulate almost three times the retirement assets compared to workers in similar non-ESOP companies. SUN Automation’s ESOP exemplifies this performance, rewarding our dedicated employee-owners with substantial balances in their ESOP accounts.
How Does the ESOP Work?
How Does the ESOP Work?
The ESOP operates through a dedicated trust fund for our employees. Each ESOP participant has a personal account balance within the ESOP, and the company makes annual contributions, primarily in the form of shares of the company’s stock, to the ESOP. These contributions are tied to the employee’s base salary. A vesting schedule applies to ensure alignment with long-term commitments.
One of the key benefits of the ESOP is that employees pay no tax on the contributions or the appreciation of their accounts until they receive a distribution from their vested balance, typically after leaving, retiring, or diversifying.
Employees become eligible for diversification rights when they complete a decade of participation in the ESOP and reach the age of 55. At this point, participants can choose to cash out a portion of their company stock account. Over the following five years, eligible participants can cumulatively diversify and cash out up to 25% of their company stock account. In the sixth year, this diversification option expands to 50% of their company stock account within the ESOP.
Joining Us and Relocating to the Maryland Area?
If joining our team would necessitate relocating to the Maryland area, we invite you to explore more about the vibrant cities and towns nearby. We understand the significance of a smooth transition, and these resources are designed to assist you in making the most of your journey with SUN Automation.
