At Point B, we believe in creating value by fostering shared success among our employees. One of the key ways we do this is through our Employee Stock Ownership Plan (ESOP). ESOPs aren’t as widely known as traditional retirement plans like the 401(k) (Point B offers this, too). So, let’s demystify the ESOP and highlight its benefits.
The decision to offer an ESOP was rooted in our founders’ vision of creating a shared sense of ownership among employees. Each year, the firm contributes shares of ESOP to participants and hires an independent third party to set a share price for these shares based on a valuation. This valuation considers factors such as actual and projected firm performance, as well as general economic and market conditions. Over time, employees accumulate additional shares through Point B’s contributions to their ESOP accounts, helping them build retirement funds.
Through the ESOP program, employees not only receive a retirement benefit but are also united in driving the company’s success, knowing that their efforts directly impact the firm’s performance and, in turn, their own financial future as shares increase in price. This unique plan enables employees to become owners of Point B and to share in the value creation of the firm.
Empowering Futures through Diversification
Leslie Bruinsma, Benefits Manager at Point B, emphasized one of the distinct advantages of the ESOP program: “One of the benefits is that employees do not have to put any of their own money in; the company contributes to the ESOP on their behalf. When they leave the company, it’s something they get to take with them as part of their retirement.” This unique approach not only alleviates the financial burden on employees but also enhances their long-term financial security.
She adds, “It’s almost like diversification, too. You can invest in traditional stocks through a traditional IRA or 401(k), but employees also have an investment in the ESOP, which is an investment in the company they work for. It really is a unique difference, allowing you to diversify your financial retirement.” This investment strategy empowers employees to diversify their retirement portfolios and have a vested interest in the company’s success.
Shared Investment in Future Potential
Leslie shared a story that perfectly illustrates the sense of shared investment fostered by the ESOP program: “There was a gentleman who recently retired from Point B. He’d been here a long time and wasn’t sure what happened to his ESOP after he left. I explained the process and let him know that the 2024 share price will be announced in 2025, so his shares were still subject to that 2024 share price.”
She continued, “He shared that it was good to know, then lifted his arms and said, ‘Go, Point B!’ He was rooting for us even as he was leaving the company, which I haven’t experienced before in my career. It warmed my heart and had the biggest impact on me.”
This story is a testament to the power of the ESOP program, where employees are not just working for the company but investing in its future. It aligns with one of our core values: To “own it” by coming together to find solutions for the shared success of our company.
Curious to Know What Other Benefits Point B Provides?
By understanding the benefits and functioning of ESOPs, our employees can better appreciate the value of their ownership stake in the company. For further information on other benefits Point B provides its employees, visit here.
