ESOP (Employee Stock Ownership Plan)
Build Your Future as an Owner at SUN
At SUN Automation, we believe in the power of ownership, and that’s why we established our Employee Stock Ownership Plan (ESOP) in 2002.
At SUN Automation Group, our employees aren’t just team members—they’re stakeholders in our success. Through our Employee Stock Ownership Plan (ESOP), every employee shares directly in the company’s growth and prosperity.
What is an ESOP?
An ESOP is a retirement benefit plan that gives you an ownership stake in SUN Automation Group at no cost to you. Your success and the company’s success are directly aligned: as SUN thrives, your financial stake grows.
How Does It Work?
- Shares of company stock are allocated annually to your ESOP account.
- Your ownership stake grows with SUN’s performance and profitability.
- Over time, your ESOP becomes a valuable asset, helping to build your long-term financial future.
The Power of Employee Ownership
When you become an owner through ESOP, you:
- Share directly in SUN’s financial success
- Gain a meaningful financial benefit beyond traditional retirement savings
- Work within a culture of mutual accountability, teamwork, and pride
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 Operate?
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.
Level-Up Your Career Journey
Explore our current openings and see how your future aligns with SUN Automation Group.
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.
