Fifteen years ago, Gear Motions took the first step in becoming an Employee Owned Company by creating an Employee Stock Ownership Plan (ESOP). Ten years ago, Gear Motions completed the sale of the company to the employees, becoming 100% employee owned. This year, in 2020, the company celebrates Employee Ownership Month (EOM) by satisfying its ESOP loan, further securing the future of our company.
This October we are celebrating Employee Ownership Month with a series of activities to highlight facts and benefits of ESOPs, and to show appreciation to our more than seventy employee owners company wide.
What is an ESOP?
According to The ESOP Association:
“An Employee Stock Ownership Plan (ESOP) is a tax-qualified retirement plan authorized and encouraged by federal tax and pension laws.
When companies launch an ESOP, they form a trust that purchases some or all the company’s shares and holds these shares in retirement accounts for employees. When the stock value increases or decreases, so does the value of employees’ accounts.”
“ESOPs provide unique benefits to the employee owners, the institutions, and the surrounding communities that they are involved with. ESOPs have been proven to motivate employees, increase productivity, improve employee retention, excel at providing employee training, keep jobs local, counter wealth inequality, contribute to business health and longevity, and so much more.”
More from TEA: What is an ESOP?
Our ESOP Story
Gear Motions was formed in 1973 by a forward-thinking owner, Samuel T. Haines, whose plan was to create a company that values its employees like it values its customers. To support this vision, his business plan was to take different companies and develop a network of precision, quality gear manufacturers focused on the customer.
In 2005, Gear Motions took the first step in becoming an Employee Owned Company by creating an Employee Stock Ownership Plan (ESOP). In 2010, Gear Motions completed the sale of the company to the employees, becoming 100% employee owned. This transition assured that the company would remain at its current location and viable for many years to come.
There are many advantages to employee ownership for the company, the employees, and our customers. Our customers are assured that their precision gearing is built by people who have a stake in the outcome. Gear Motions Employee Owners are highly invested in the success of the company. Our customers receive world class customer service with special attention to exceeding expectations.
We believe creating highly invested employees, capable of producing high quality gears, will grow our business success in ways we never imagined.
Employee Ownership Month
October is Employee Ownership Month (EOM)—a month long celebration of the undeniable benefits employee ownership provides to employees, companies, local communities, and the nation.
Gear Motions is celebrating Employee Ownership Month all month with activities aiming to increase ESOP awareness as well as provide employee owners a chance to enjoy some tasty treats, fun contests, and socially distanced quality time with their fellow employee owners.
Want to see even more EOM coverage? Follow The ESOP Association and use hashtag #EOM2020.