The Connection Between Effort and Reward Must Exist...For Work to be Satisfying - M. Gladwell

Have you ever wondered what it is like to work at an ESOP?  I have worked for two (2) ESOP’s in my working lifetime.  Only twenty percent (20%) of large corporations are ESOP.  ESOP stands for Employee Stock Ownership Plan.  The employees actually own the corporation where they work.

How does that happen?  With DGK, when the last principal owner was retiring, the employees purchased the stock in the corporation so the business of insuring our neighbors could continue.  This plan allows for retirement without the need to sell the agency or shut its doors.  An experienced financial advisor was first place to start.  There are many requirements and filings that must be met: stock price of the corporation must be established, rules for creating and administering stock must be adhered.  There may be a limit placed on the percentage of stock that one employee can own.  Specific compliance unique to ESOPS's  becomes going.

ESOP stocks are not for sale on the open stock market.  The stock is confined to current employees.  Generally, after a certain length of employment, employees begin to earn stock.  The company can be a partial or full employee ownership program.  DGK is a full one hundred percent (100%) employee owned corporation. 

Establishing this type of plan offers the corporation many benefits.  Creating an employee stock ownership plan is a way for the company to raise capital.  ESOP offers a plan to finance a business in a fluctuating economy or to continue the business when an owner retires and take care of the employees.  Sears & Roebuck in the late 1800’s established a stock option plan for their employees.  Southwestern Airlines has an employee stock option plan.  It is also an incentive to recruit employees.   As employees begin to take an active part in the future of the company, the company grows and succeeds. 

Insurance is serious. We deal with life, death and financial well-being of our clients.  It can be stressful but knowing my work matters provides me with job satisfaction.  Working at an ESOP, I know that my efforts are valued.  I prefer working at an ESOP.

For more information about ESOP please see http://www.esopassociation.org

and http://www.nceo.org