How Do I Become Vested?

Vesting in the Company’s ESOP

Vesting in the company’s ESOP is an important milestone for any employee-owner. Vesting means you have earned the right to retain the company shares allocated to your ESOP account, even if you leave the company or retire. Here’s what you need to know about vesting in our plan:

Vesting Schedule

Three Years of Service: In our company’s ESOP plan, you achieve full vesting after completing three years of service, provided you have worked at least 1,000 hours each year. Here are some examples:

• Jonas was hired in February 2020. He worked 1,000 hours in 2020, 2021, and 2022. When the ESOP began in January 2023, Jonas had already met the vesting requirements. He was vested from day one of the ESOP.
  
  Greg was hired in March 2023. He worked 1,000 hours in 2023, 2024, and 2025. He becomes vested in 2025.
  
  Alicia was also hired in September 2023. However, because she was hired late in the year, she would not have enough time to earn 1,000 hours in 2023. Therefore, she will become vested in 2026.

Benefits of Becoming Vested 

• Ownership of Shares: Once you are vested, the shares in your ESOP account are yours. This means that if you decide to leave the company for any reason after you are vested, the shares you have accumulated during your time with the company will remain with you.
  
  
• A Reward for Your Service: Vesting is essentially the company’s way of rewarding you for your dedication and hard work. It is a milestone that signifies your participation in the company has solidified and recognizes your role in its success.
  
  
• Financial Security: The vested shares in your ESOP account can contribute to your financial security, especially as you approach retirement. The value of these shares is tied to the company’s performance, so as the company grows, so does the potential value of your investment.

Key Takeaway

In summary, vesting in the ESOP means you have reached a point where you have a permanent stake in the company’s ownership through the shares in your account. It is a clear indicator of your valuable contribution to the company and a benefit that supports your financial well-being in the future.