Page 18 - Q1_2024 Rosendin Corporate Newsletter

What is an ESOP?

no cost to the employee.
Each year Rosendin contributes cash or shares of company Stock to the ESOP plan.

What does ESOP stand for? How does vesting work? How do I know what
is going on with
Employee Stock Ownership Plan Less than 2 years = 0% vested
2 years = 20% vested my account?
3 years = 40% vested
4 years = 60% vested Each July/August, eligible
5 years = 80% vested employees receive a statement
6 years = 100% vested with their new ESOP account
balance by mail.
You are also 100% vested if:
from a 401(k) plan? Once you have received your
While employed by the company,
ESOP contributions come solely from you’ve reached age 65 or older check the status of your account
the company, making them and have reached at least the online anytime at principal.com.
completely free to employees. 5th anniversary of the date you
become an ESOP participant.
An ESOP invests primarily in an
employer’s stock, while a 401(k) You die or become totally &
permanently disabled
in which employees may invest funds. while employed.
ESOP fun facts:
ESOP companies are 4x more
resilient than other companies
How does ESOP work? in an economic downturn.
Who is eligible for At the close of each plan year the ESOP companies have a 25%
ESOP contributions? process begins to determine the value higher job growth rate than
of the company & calculate the non-ESOP organizations.
You must be 18 years of age
by December 31st of the plan year. Rosendin adopted the ESOP in 1992.
The share price is announced during
You are eligible in the year you were hired. the annual ESOP update each June.
You are a full-time employee not For eligible employees, shares of
covered by a CBA. company stock are credited to your
account based on a formula related
to your annual pay.

For further information, please visit the ESOP page on the Intranet
For questions, contact hr@rosendin.com