Benefits of Employee Stock Ownership Plan for Your Injection Molder

Employee Stock Ownership Plans or ESOP is basically a way in which employees of an injection molding company (or any publicly traded company) can own a share of the organization they work for. It is a qualified retirement plan, like a 401(k), that buys, holds and sells company stock for the benefit of the employees, providing them with an ownership stake in the company. Employees of injection molding companies are notoriously hard working and loyal, what better way to reward their dedication and years of service than with an ESOP.

Sharing Prosperity

Through their ESOP accounts, employees become part owners of the business. The value of their stock interest is tied directly to the future performance of the business. Therefore, an ESOP has proven to be a considerable incentive to motivate employees, both individually and collectively, to work efficiently with a view toward the bottom line.

There are many advantages to an injection molding company adopting an Employee Stock Ownership Plan; advantages that both the owner and the employees can benefit from.

·Motivates employees to become more productive since they are affected financially by company profitability.

·Attracts high-quality recruits and retain them.

·Staff turnover is reduced due to increased loyalty.

·Allows owner a way to sell the company while still retaining control of the company in a gradual transition

·Provides a way to reward the employees who helped establish and build the company or remained employed with the company for a long time.

·Encourages preservation of the principles the company was founded upon.

·Studies have demonstrated that ESOP companies grow faster than their non-ESOP counterparts.

Protected Future

An ESOP can provide some protection against an unwelcome takeover attempt. This is more likely to be an advantage for a publicly traded company, especially in the banking industry. A takeover offer often presents conflict for the ESOP fiduciaries. They are typically top managers of the target company, and they'll have to resolve conflicts between their personal interests as officers and employees of the company, their fiduciary responsibility to the company and their fiduciary responsibility to the ESOP participants and beneficiaries. Injection molding manufacturers are no different, and that's why Crescent Industries is proud to be an Employee Stock Ownership Plan company. To learn more about Crescent Industries capabilities and services, call 1-800-411-3844 or visit our website

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