An Employee Stock Ownership Plan (ESOP) is a retirement plan. We contribute our stock to our employees. The plan has an account for each employee. With an ESOP, you never hold the stock while still employed with the company. If an employee is terminated, retires, becomes disabled, or dies, the plan will purchase the shares of stock in the employee’s account, and the employee receives the money.
D&D Roofing provides our employees with an ownership interest in the company. There are no upfront costs to the employees. Shares are given to employees and are held in an ESOP Trust until they retire or leave the company. The shares are then bought back by the company and the employee receives money for their shares earned.
In an ESOP, employees do not pay taxes on the contributions until they receive a distribution from the plan when they leave the company. They can roll the amount over into an IRA or other qualified plans, or take it as cash.
D&D Roofing believes that Employee Ownership increases productivity and profitability, and improves employee dedication and sense of ownership. When you work for us, you are an Employee Owner. When the company does well, the stock price does well, and YOU do well. We own stock in a single company, OUR company.
Our employee retired from D&D after 23 years and received $140,000 from the ESOP.