Our Employee Stock Ownership Plan (ESOP) is your other company retirement benefit. It is not a replacement for your 401(k) account. PTL’s ESOP was created to share long-term success among all employees, to maintain our independence and local ownership, to secure the company’s future and to provide employees with an additional retirement benefit.
All employees are treated exactly the same with this ESOP. Over the road Drivers participate on the same basis as office, maintenance, and administrative employees. New employees must be at least twenty-one years old and work for PTL for one year (working at least 1,000 hours during that year). Once you meet that criteria, you join the plan on the next January 1 or July 1. Once you enter the ESOP, you’ll begin accumulating PTL shares in your ESOP account. After you enter the ESOP you will receive an ESOP statement once a year. (Depending upon your date of hire and due to the structure of the plan, it could be 2 1/2 years after your date of hire that you receive an ESOP statement.) Your ESOP benefit is completely funded by the company. It costs you nothing.
PTL remains a privately held company and is not traded on any public stock market, like the New York Stock Exchange or NASDAQ. You may not purchase additional shares, nor may you sell the shares you hold in your ESOP account.
Our trustee, First Bankers Trust oversees the ESOP plan’s operations, acting in employees’ best interests as plan participants. They hire a third-party appraiser to determine the value of our stock each year. The appraiser, by law, must be independent and qualified. To determine the annual stock value, the appraiser looks at a number of factors, the most important being PTL’s business performance.
As a 100% ESOP Owned S Corporation, the Trust is a tax-exempt entity so when the Company is profitable, those taxes that would typically have to be paid are now tax deferred and can stay in the company to build up cash/investments, reinvest in the business, pay down debt, etc… which all add to value.
There are about 8,000 ESOPs in America. Our ESOP plan provides us with a unique opportunity, one most people don’t receive. How well the company does in the future will depend on you. Research studies consistently show that participative ESOP companies perform better than companies that are not employee-owned or participative. If PTL does well, the ESOP stock could be worth quite a lot of money, but no one can predict how much. The company intends to be very successful and as an Employee-Owner there is the potential to share significant wealth. Let’s make the most of it.