History of ESOPs
Who is was the inventor of ESOPs?
Louis Kelso
Where can you find ESOP Education Materials and Newsletters?
On the agency server, Y:\ESOP Education Materials
According to a recent Rutgers University study, what is the median value of an employee-owner's ESOP account?
$165,000
What determines the number of shares an eligible participant will receive?
Eligible Compensation
When does a newly eligible participant enter the ESOP?
January 1, April 1, July 1 or October 1. To participate you need to work 12 consecutive months with a minimum of 1,000 hours.
Which year was the ERISA established?
1974
How many ESOPs are 100% employee-owned?
Approximately 2,500
According to a recent Rutgers University study, what is the typical American household's savings?
$17,000
What must an employee do to earn a year of vested service?
Work 1,000 hours
What is the age and participation within the ESOP Plan requirement for normal diversification?
Age 55 with 10 years of participation in the ESOP Plan.
What was the name of the first employee-owned company?
Peninsula Newspapers in Northern California
Which region of the country has the highest percentage of ESOPs? (East, Southeast, Midwest, Southwest, or West)
Midwest
According to a recent Rutgers University study, how many times more is the wealth for employee-owners age 60 to 64?
10 times more wealth than the typical American in that age group.
What are the two requirements that must be completed by all eligible employee-owners in order to receive an allocation of shares each year?
1. Be actively employed on the final day of the year (12/31). 2. Work at least 1,000 hours each plan year.
How many ESOP’s are there in the US?
There are now nearly 7,000 ESOPs, with a total of 14 million participants and $1.3 trillion in assets.
What year was your Employee Stock Ownership Plan established at Charleston|Orwig?
2018
Which industry has the highest percentage of ESOPs?
Services
How much more likely are ESOP companies to stay in business?
25%
What are the two requirements for eligibility?
1). Work a minimum of 12 months, 2). Complete at least 1,000 hours of service
True or False: The ESOP is 100% funded by C|O.
True
Name the senator that introduced the Employee Retirement Income Security Act (ERISA).
Russell Long
How many times greater is the retirement wealth for participants in an ESOP compared to participants at non-ESOP companies?
2.5 times greater
How much higher is the job growth rates for ESOP companies compared to non-ESOP companies?
25%
What are the five triggers to a distribution?
1). Death, 2). Disability, 3). Termination, 4). Retirement, and 5). Diversification
Who appoints an ESOP trustee?
The Board of Directors