October is Employee Stock Ownership Plan (ESOP) Month, a time to celebrate and promote the spirit of employee ownership.
What is an ESOP?
An Employee Stock Ownership Plan (ESOP) represents a retirement plan qualified under federal tax and pension regulations, which is both endorsed and incentivized.
Upon initiating an ESOP, companies establish a trust that acquires a portion or the entirety of the company’s shares, holding these shares in retirement accounts designated for employees. As the value of the company’s stock fluctuates, the worth of employees’ accounts follows suit.
ESOPs offer distinct advantages to employee owners, institutions, and the communities in which they operate. ESOPs have demonstrated their ability to inspire employees, elevate productivity, enhance employee retention, excel in delivering employee training, preserve local employment opportunities, address wealth inequality, contribute to the well-being and longevity of businesses, and much more.
Our ESOP Story
Gear Motions originated in 1973 under the guidance of a forward-thinking owner, Samuel T. Haines. His vision was to establish a company that held its employees in the same esteem as its valued customers. To realize this vision, his strategic approach involved amalgamating various companies to build a network of precision-oriented, top-quality gear manufacturers with an unwavering customer-centric focus.
In 2005, Gear Motions embarked on its journey to become an Employee Owned Company by instituting an Employee Stock Ownership Plan (ESOP). The culmination of this endeavor transpired in 2010 when Gear Motions achieved complete employee ownership, with every single employee holding a stake in the company. This pivotal transition not only ensured the company’s steadfast presence at its current location but also guaranteed its sustainability for the foreseeable future.
Thank you to our Dedicated Employee Owners!
As we embrace ESOP Month, it’s the perfect opportunity to combine two meaningful occasions: ESOP Month and celebrating employee milestones. Recognizing your employees’ dedication and commitment through anniversary celebrations not only reinforces the values of employee ownership but also builds a stronger, more engaged workforce.
Congratulations to the following employees on their milestone anniversaries!
George Bradley 45 years
Paul Andruszko 35 years
Dan Bartelli 35 years
Rick Kasniak 35 years
Doug Sturgis 35 years
Ken Harris 30 years
Scott Corsette 25 years
Jason Szabad – 20 years
Jeff Rynders 15 years
Mike Farrar 5 years
Bobbie Herzog 5 years
Geoffrey Hines 5 years