employee
stock ownership
Harkins is an Employee Stock Ownership Plan (ESOP). What that means is so much more. Similar to a 401(k), this is a separate retirement fund that gives employees ownership interest in the company. Harkins funds the plan by making contributions and employees don’t contribute a dime. With this plan in place, employees are incentivized to work hard and financially participate in the stock’s appreciation. Learn more about our ESOP below.
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What is an ESOP?
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An Employee Stock Ownership Plan (ESOP) is an employee benefit plan that gives employees ownership interest in the company through shares of stock. Harkins’ ESOP is a tax-qualified retirement plan to help employee-owners prepare for their future.
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What is the purpose of an ESOP?
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An ESOP is an effective tool for ownership succession planning while also enabling employees to share in the company’s success.
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ESOP vs. 401(k)What is the difference between an ESOP and a 401(k)?
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A 401(k) retirement plan is funded by the employee, and an ESOP is funded by the employer.
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What are the ESOP eligibility requirements?
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To be eligible, one must be at least 21 years of age, complete one year of service, and complete 1,000 hours each plan year.
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How do employees receive their contribution?
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Eligible employees receive 10% of eligible compensation to their ESOP account in the form of cash or stock.
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