NewAge Industries transferred an additional nine percent of the value of the tubing company to its ESOP (Employee Stock Ownership Plan) on June 30, 2016. The company is now 49% employee-owned, according to NewAge.
“We underwent an initial evaluation over 10 years ago to determine the value of the company’s stock, and I sold 30% to the ESOP,” says CEO Ken Baker. “I sold another 10% in 2013, and now, with this additional nine percent, it brings the total ESOP ownership to 49%. I’m very pleased to be able to give back to our team members and their families in this way.”
Baker notes that the value of the shares is given to employees after retirement at no cost.
“The shares are bought by the ESOP through an internal company loan. Employees receive an annual statement showing how many shares they own and the current value of those shares,” says Baker. “When a team member retires, the ESOP buys back that team member’s shares, and the team member gets a nice sum of money for retirement.”
Baker says that the ESOP is a succession plan that keeps everyone employed and gives employees pride of ownership. Having the ESOP in place also improves morale and camaraderie, according to Baker, and benefits customers because team members understand that their everyday actions affect their retirement benefits.
For more information, visit: www.newageindustries.com