In 1984, Sundt established an Employee Stock Ownership Plan (“ESOP”) as a way to bring a heightened sense of dedication and commitment among all our employee-owners. An ESOP company is different from traditional types of corporate ownership in that it is owned in whole or in part by its employees through its ESOP trust, and each employee-owner shares in the profits and success of the company.
Curious to know how this sharing impacts you as an employee? Employees are generally eligible for participation after 1,000 hours of credited service during the initial full 12 months of employment and once this happens it all begins! The company will contribute up to 14 percent of your base salary to your ESOP account each year (assuming you are contributing at least 5 percent of your base salary to the 401(k))! There’s more … additionally, Sundt may share a portion of its net income each year with ESOP participants in the form of a stock dividend! The ESOP is truly a mechanism to help you accumulate wealth for the future and sets us apart from many of our competitors! When we all think and act like owners, everyone holds each other accountable and great things happen.
Sundt’s 401(k) is one of the best ways for our employee-owners to save for their own retirement. This plan reduces your current income taxes and allows your money to grow tax deferred. Additionally, if you participate in the 401(k) plan, you will maximize your ESOP through company matching contributions. Employee-owners are eligible to participate in the 401(k) once they have completed six months of service and worked 500 hours.