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ESOP at ETC


  • ESOP

    ETC is now and always has been a privately held company. This allows the company to make decisions on a local level about everything that happens – manufacturing, distribution, wage scale, and the generous quarterly bonus program. In December of 2015, ETC announced that it was implementing an ESOP, or employee stock ownership plan.

    ETC is now 33% employee owned, solidifying the private ownership nature of the company.

    What does the ESOP mean for our employees?

    The ESOP helps to preserve ETC as an independent company for the future and allows employees to have a voice on certain company issues and share in the financial growth of ETC.

    Every year for the next 10 years, 10 percent of the 33 percent share allotted to the work force is granted to employees. Half of those shares are distributed equally to each employee, regardless of seniority, job title or rank. The other half is based on pay levels. The more you make, the larger share of that other half you get. This sends the message that employees are encouraged to continue to learn, grow, and expand their careers within the company.

    ESOP is in addition to company contributions to the 401(k) retirement plan, a company-wide bonus plan, and other benefits employees already receive. Employees don’t have a say on pay issues, but if there’s ever a question of the company getting liquidated or sold, everyone gets a vote.

    “We see this being a protection adding to the longevity of the company as an independent company,” says ETC CEO, Fred Foster.