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[-] BassTurd@lemmy.world 37 points 5 months ago

I recently started at a private company that does profit sharing through ESOP. This year to all invested employees, so those more than ~1yr, they contributed around 30% of their annual salary in stock to their retirement. The private stock price rose about 32% from last year as well. On average the stock goes up 20%+ and the contributions have been around 18%. The founder and IG CEO found that companies that have an ESOP grow faster than others, and are happier. It takes 6 years for full investment, but after that, when you leave, they pay out your shares at that stock price, over a few payments I believe.

[-] fluckx@lemmy.world 14 points 5 months ago

I bet it helps with employee retention as well.

[-] ChillPenguin@lemmy.world 11 points 5 months ago

I wasn't a believer when I started at an ESOP. But looking at my retirement funds after working for 8 years at the company. Then comparing it to friends who were given shares of large public companies and making maybe like 10k over 4 years. Absolutely worth it.

[-] BassTurd@lemmy.world 5 points 5 months ago

If I were eligible this year, it would have been >20k just given to me for retirement. They also contribute to 401k. It's nothing crazy but it's something on top of ESOP. I don't want to need to work until I'm to old to enjoy retirement, but my wife and I like to travel now. This helps do both.

this post was submitted on 20 May 2024
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