ESOP (EMPLOYEE STOCK OWNERSHIP PLAN)
The ESOP (Employee Stock Ownership Plan) creates a direct link between the company interests and employee interests. Since SUN established its ESOP in 2002, 100% of the company’s stock has been held in a trust for employees as a qualified retirement plan. Therefore, participants have a vested interest in the results of their work and the company’s performance and growth.
As of 2012, the National Center for Employee Ownership (NCEO) estimates that about 12,000 ESOPs, profit sharing, and stock bonus plans invest primarily in employer stock, covering about 11 million employees.
WHAT DOES THE ESOP MEAN FOR A SUN AUTOMATION EMPLOYEE?
Participants in ESOPs do well. 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. A 1997 Washington State study has found that ESOP participants have almost three times the retirement assets, as do workers in comparable non-ESOP companies. SUN Automation’s ESOP reflects this performance, rewarding employee owners with substantial balances in their ESOP accounts.
