Employee Stock Ownership Plan
Moretrench has been a 100% employee-owned (ESOP) company since 1999. This milestone completed the gradual transition from a closely held family-owned business to an employee-controlled enterprise that then President Edward Moore, son of the company founder, had initially envisaged in the 1960s. In 1999, via a purchase agreement, the Employee Stock Ownership Plan Trust became the majority stockholder in Moretrench American Corporation.
An ESOP company is different from traditional types of corporate ownership in that it is owned in whole or in part by its employees through its ESOP Trust, and each employee shares in the profits and success of the company.
Employee owners experience greater job satisfaction and perform better because they have a true stake in the company’s future.
Annual contributions are determined by company performance and made to eligible employee accounts. These contributions are normally based on a percentage of wages: employees are generally eligible for participation after 1,000 hours of credited service during the initial full policy year of employment.
Membership in an ESOP allows companies to entirely fund a retirement savings plan for their employees over and above any 401K plan that may also be available. And, as research has shown, employee ownership often brings with it increased dedication and work effort that translates to bottom line improvements.