TMC: Letting people go?

Correction:
The employees do not own the company nor will they ever own the company. The employees do own a small percentage of the company. ESOP is the common system for this. Typically, if you work a lot of years (20 plus) AND the company does well, then at retirement you might have a nest egg that adds meaningfully to your retirement. That is a small percentage of all employees. IOW don't get overly excited about ESOP.

 

So much contradiction in 2 sentences. An esop is ownership in the company, but they they well not have control of the company. As long as the company stays profitable then the entire esop profits which gives the employees, those who are directly involved in making the company money a vested interest in making sure it succeeds.

For each year an employee is with tmc they get a set amount of esop based on a monetary about, each year that employee is with tmc, they get vested into a set amount, after 5 years the employee is 100% vested into the esop, so whatever the value of that employees esop shares is with, when he leaves, he gets cash value, minus taxes.

And to be honest with you, done esop programs are far better than some 401k plans.