Our Employee Stock Ownership Plan
The company's owners chose to shift away from a regular 401(k) to ESOP because of their desire to diversify holdings and share the success of the company with the employees.
Because of this plan, we all work to align our actions and attitudes with the principles of ownership as opposed to those of only an employee of a company.
What is ESOP?
An Employee Stock Ownership Plan (ESOP) is a benefit plan in which employees own private stock in that company. In an ESOP, a company sets up a trust fund, into which it contributes new shares of its own stock or cash to buy existing shares.
How ESOP Works
Shares in the ESOP trust are allocated to individual employee accounts. Generally all full-time employees over 18 participate in the plan. Allocations are made either on the basis of relative pay or some more equal formula. As employees accumulate seniority with the company, they acquire an increasing right to the shares in their account, a process known as vesting. Acadian employees are 100% vested after six years of service.
Employees receive their stock when they leave the company, which the company must buy back from them at fair market value. Private companies, like Acadian, must have an annual outside valuation to determine the price of their shares.
What Makes ESOP Special
Learn more about ESOP: The National ESOP Association