EEC’s Employee Stock Ownership Plan
An ESOP is an Employee Stock Ownership Plan, which occurs when a business is owned in whole or in part by its employees. The plan includes a Trust Agreement providing for the ESOP Trust to hold cash and shares of company stock (the Trust Assets). Participants have accounts that represent an interest in the Trust, making them employee-owners versus shareholders.
Contributions to the ESOP trust account are made in cash or stock at no cost to the employees. The ESOP Trust is the owner of the shares and the employee owners have a vested interest in the Trust. Cash contributed to the Trust is used to purchase stock of ESOP owners when they retire or leave the company. This provides a retirement benefit to the current ESOP owners and a method of ownership transition to stock holders when they retire.
EEC’s employee ownership increases our production and profitability, and improves our employees’ dedication and sense of ownership!