Employee-Owned
Rosendin is the nation's largest employee-owned electrical contractor.
What's an ESOP?
Rosendin’s Employee Stock Ownership Plan (ESOP) is an employee benefit program governed by federal law that provides employee-owners with an ownership interest in the company. Employee-owner accounts are held in a tax-advantaged trust, with stock value increasing or decreasing based on the company’s performance. As a result, Rosendin’s growth and overall value are directly tied to the collective performance of its employee-owners.
30+ Years of Employee Ownership
In 1992, the Rosendin family decided to sell the business to its employees, ensuring the continued legacy of Moses Rosendin while recognizing the essential role employees played in the company’s success. The transaction was completed in 2000, at which point Rosendin became 100 percent employee-owned. Since then, the company has continued to grow alongside its employee-owners and customers.
Did You Know?
ESOP companies experience a 25% higher job-growth rate than non-ESOP organizations.
Rosendin offers a traditional 401k plan with an annual company match, allowing employees to choose how to invest their payroll contribution
Employee-owned companies are 4x more resilient than other companies in an economic downturn.
Cooperative businesses have substantially lower failure rates than traditional corporations and small businesses.
Companies offering both an ESOP and a 401(k) plan had contribution levels 260% higher than companies that do not offer both benefits.
ESOP contributions are made entirely by the company, helping employee-owners build retirement wealth at no cost to the employee.
ESOP companies may be exempt from federal income tax, but they still distribute millions of dollars annually to eligible participants.
Employee-owned companies keep jobs local and give back to the communities they serve.
Rosendin supports our local communities through annual food collection and donation drives, the Rosendin Foundation, service days, and more.
32
Years of employee ownership
4x
More resilient than other companies in an economic downturn
0
No cost contributions – FREE retirement benefits
FAQs
An ESOP, or Employee Stock Ownership Plan, is a tax-qualified retirement plan that invests primarily in the employer’s stock.
Working at Rosendin means eligible employees may become beneficial owners of the company, providing an ownership interest and access to retirement benefits through the ESOP. Participation in the ESOP does not include involvement in company management, day-to-day decision-making, or hiring and termination decisions. Participation in the ESOP also does not guarantee continued employment with the company.
Nothing! Annual stock contributions, known as allocations, are made directly by the company on your behalf to help build long-term retirement wealth.
There are several key differences between an ESOP and a 401(k) plan. An ESOP invests primarily in the employer’s stock, while participants select from a range of investment options within their individual 401(k) accounts. A 401(k) plan allows employees to contribute their own money, whereas an ESOP contribution is made solely by the company at no cost to employees. In addition, 401(k) plans may allow participants to take loans, whereas ESOPs do not.
ESOP account balances typically change once per year. Employee-owners receive an annual statement outlining the year’s financial activity, including company contributions and the updated account balance based on the new share price.
As an employee-owner, individual contributions to the company’s overall success can directly influence the value of an ESOP account. Because ESOP account values are tied to the value of the company’s stock, actions that support company performance may help account balances grow. These actions may include identifying process improvements, working more efficiently, and consistently performing job responsibilities to a high standard. While each employee-owner’s impact depends on their role, efforts to improve efficiency, reduce costs, or support revenue growth can increase ESOP account value.
An ESOP trustee oversees the ESOP trust and represents the interests of plan participants, ensuring the plan is operated in their best interests. The trustee also helps establish the annual stock price in coordination with an independent valuation firm. ESOP trustees are either appointed by the Board of Directors or elected by employee-owners. Trustees are knowledgeable about the plan and are available to answer questions employee-owners may have regarding ESOP participation.