What's new
What's new

Any of you guys an ESOP?

cranny

Plastic
Joined
Aug 24, 2010
Location
GA
ESOP's seem to be fairly common in the manufacturing industry. We became 40% ESOP owned in 2007 and then 100% in 2012. All in all, it's been a great move so far. For those of you that are, I was curious of your experience.
 
I worked for an ESOP. It was OK I guess. The issue I had is that they kind of sold it as a viable retirement investment. You get shares of the company and sell them when you retire. But, my experience was that even if the company did well, you'd be much better off to have a 401K or IRA, which is what I did. But, most guys there refused to believe that. They were headed for a rocky retirement.
 
ESOP's seem to be fairly common in the manufacturing industry. We became 40% ESOP owned in 2007 and then 100% in 2012. All in all, it's been a great move so far. For those of you that are, I was curious of your experience.

I can't say for certain if I'm an "ESOP" or not, but I have been called an "SOB" many times over the years!

Later,
Russ
 
I sent off for a DNA test a couple weeks ago to see my ethnic make-up. I think I am Heinz 57 made up of many ingredients, I could be part ESOP, we will see.
 
ESOP's seem to be fairly common in the manufacturing industry. We became 40% ESOP owned in 2007 and then 100% in 2012. All in all, it's been a great move so far. For those of you that are, I was curious of your experience.

I think one of the USA's larger professional serial bankruptcy firms tried it and came a cropper. May have been done primarily to bust unions from more clever angles than usual. That was part of their biz model as well.

Had originally been founded as a rather bad airline ("Untied", was it?) before they found the bankruptcy line-of-business schtick less like actual work.
 
Maybe even some Putz eh?

Schmekel, rather. There's a dilution factor, each generation of DNA. Or just cold weather.

Eventually, it's just "starter button" sized and ready for gender-change (there's that fable thing, again..) surgery.

Dress warmly on that snowmobile. VERY warmly!

"Miss Baby was all right, 'til me and Junior here turned her gender back around!" [1]


[1] with 'pologies to "Brother Dave" Gardner.
 
We did break our all time record yesterday....

Haven't seen many sleds out on the many trails around here.
Lord knows they spent enough on grooming machinery.
McKean Snowriders
PISC Presque Isle Snowmobile Club

ISTR my '79 gran Wagoneer Quadra Trac as 12 days old when a tail-end of February blizzard dropped right around 4 feet of snow on Metro DC in just over a single day's time.

Bemoaning I hadn't done a snowplow with the deal, as half of my 780 feet of driveway ran thru a gully about 3 to 5 feet below adjacent terrain.

No fear. The Subaru DL 1800 burrowed UNDER the drifts, tiny flat four grumbling like a 1940 Buda Semi-Diesel buried out of sight in some damned cold-war bunker.

Tall Wagoneer just bulldozed 'em, grille and windshield served just as well as a plow.
 
A company I used to work for went ESOP.
In our case, what that meant is that the founders pulled a lot of cash out of the company, by "giving" us all stock, and paying themselves for it. So they got rich. Of course, the company was then indebted and cash short in general. Within a year or so, it went bankrupt, and was bought by a competitor. My shares, of course, are worthless.
But the year I got them, the IRS called them income. So I paid tax on their imaginary value. I probably could have recouped that cash, but I was young and dumb.
 
My shares, of course, are worthless.
But the year I got them, the IRS called them income. So I paid tax on their imaginary value. I probably could have recouped that cash, but I was young and dumb.

Depends. Not so young, jury dismissed, hung, on "dumb" once recouped VAT on - IIRC $9600 Sterling - one month of my fees, that project, given London's costs - after quite some time of trying to dun it out of a deadbeat client.

Time having passed, had to satisfy the audit Inland Revenue threw at the firm. Auditors fees, our side, cost far more than the amount recovered.

"Body Corporate" and VAT registered, no other choice. Failure to chase one set of rules can violate harsher ones, yet, and on your own side.

Individual? Usually do have choices, even if selecting only among degrees of bad ones.

Back to ESOPS? ISTR Lincoln - the welder folk - getting a lot of press, and a very, very long time ago, for what was rated a good one. At that time.

Not sure more recent veterans still agree, and STR we have that commentary already in a PM thread not too far back.
 
Wow, interesting replies to say the least. I hate to hear the negative responses because it's really been a good thing for us. I should also clarify, our company never claimed the ESOP would take the place of everyone's retirement. We offer and encourage contributions to a 401K, which we match. The ESOP is a great retirement piece to supplement your own retirement portfolio. The original owners, who built the company, could have sold it to the highest bidder and walked away leaving the employees at the mercy of the new owners. Or they could sell it to the company creating an ESOP, which they did, thereby giving the employees a chance at reaping the profits later at their time of departure. There's no chance of that happening if they sold to someone else.
 
You list your occupation as "GM"

So your part of the management team ?

Of course it's a good deal for you.
 








 
Back
Top