An Employee Stock Ownership Plan (ESOP) allows employees to own part of the company they work for by accumulating stock in the company. Those stocks are allocated into individual retirement accounts at no cost to the employee. An ESOP is created when a company sets up a trust fund (a legal entity that holds shares of stock on behalf of employees) and cash contributions are made by the company into the trust. Employees are allocated stock in the company based upon time of service and compensation. The value of stock in the company is determined by an independent appraiser and increases or decreases based upon the financial success of the company. If the company is profitable, value of the shares increase, and everyone benefits. The ESOP ultimately provides its members an additional source of retirement income.
Bayview adopted the ESOP so that employees can share in the value and growth of the company with the hope that it will financially benefit each of its members in retirement. The ESOP is intended to give each participating member a meaningful stake in the financial success of the company. Every member of the ESOP has a unique opportunity to impact the overall success of the company by performing their job to the best of their abilities. However, it takes all of us working as a team to achieve our goals as a company. When we give our best every day and work as a team, we are having a direct impact on our own future. That is the beauty of being an ESOP member: as employee owners, when we work together and give our all on a daily basis, we all may benefit in retirement.