What is Employee-Ownership?
St. Michael’s is proud to be an employee-owned business which provides employees with an opportunity to get ownership interest in the company. Employee-ownership is more than just a monetary benefit, it is a total mindset shift which provides employees with a stake in the company.
The phrase “think like an owner” is not just a common slogan but a proverb of empowerment. Everyone here can make a difference in our operation. The success of the company and the ultimate stock price value depends on what YOU do.
Are you willing to go the extra mile for the client? Are you willing to put in the time to know what “right looks like”? Will you take the time to help recruit candidates to fill open positions? Will you go beyond what is expected of you to help the business thrive? All actions described here and more are apart of how we achieve success and live out our Core Values.
The Many Faces of Employee-Ownership
Our ESOP would be worthless without the efforts of so many employee-owners. Below you can see what being an employee-owner at St. Michael’s is all about!
With employee-ownership, shares are earned. WE control how successful we are as a company and WE reap the rewards of our hard work by positively impacting the company’s value.
A Different Way of Thinking
St. Michael’s ESOP provides employees with an ownership interest in the company after one-year of employment. Eligible employee-owners earn St. Michael’s stock based on the company’s performance. Each year, the company is appraised for its market value by an independent evaluator. The company’s value divided by the shares outstanding is the stock price.
The share price is multiplied by each individual employee-owners’ number of shares to produce the overall value of their ESOP account. The more time an employee has with St. Michael’s, the more shares they can accrue. These shares are held in retirement accounts with tremendous growth potential for tax-deferred savings. This additional source of retirement savings does not cost employees anything out of pocket!
Our clients benefit from motivated individuals who have a stake in the outcomes. The better the work product we produce, the more positive our performance assessments become. As a result, we send highly motivated employee-owners to our client sites every day.
Data from the Department of Labor (DOL) for retirement plans with 100 or more participants show that ESOPs outperformed 401(k) plans in 15 of the 20 years between 1991 and 2010 and underperformed in only three (two were the same). The longer an employee-owner stays with St. Michael’s, the more shares they will accumulate.
According to the National Center For Employee Ownership, in 2019, there were more than 6,000 ESOPs in the U.S., making business owners out of roughly 13.9 million employees. These companies tended to outperform when compared to similar companies that are not employee-owned.