An employee stock ownership plan (ESOP) is a qualified retirement plan in which the company contributes its stock (or money to buy its stock) to the plan for the benefit of the company's employees.
Effective December 31, 2012, Mayo Construction became an ESOP. The ESOP will invest primarily in the common stock of the company, with its purpose being to provide eligible employees with an ownership interest in the company. An employee will become a participant in the ESOP as of the date of hire and all employees are eligible to participate in the ESOP.
Mayo Construction makes all contributions to the ESOP. Employees who have satisfied the eligibility requirements and who have completed at least 1,000 hours of service during the calendar year will receive a portion of the company’s contribution to the ESOP for that calendar year.
Mayo Construction wants to provide an ownership culture that encourages their employees to “think and act like owners". Research has shown that such companies are more productive, faster growing, more profitable, have less turnover, and generate more wealth.