In 1969 Jerry Mathwig established Metro Sales. As the business grew, Jerry added more employees and locations and emerged as one of the top document technology companies in the United States. Jerry considered his options for continuity of the business and landed on an Employee Stock Ownership Plan as the answer. In 2019 ownership of the company was transition to an ESOP. This essentially gave 100% ownership to the employees that helped Jerry achieve his vision. As we celebrate national ESOP month, MSI is proud to be 1 of the 6,482 ESOPs in the United States.
What is An Employee Stock Ownership Plan (ESOP)?
An ESOP is an employee benefit plan that provides employees with beneficial interest in a company in the form of shares of stock. These shares cannot be sold like those of a public company, and are payable upon an employee’s retirement from the company.
What are the benefits of an ESOP for a company and its employees?
As employee-owners there are many financial as well as personal benefits of being part of an ESOP. Employees financially benefit by sharing in the rewards when the share price rises. From a career standpoint, employees often feel more secure in their careers and that their job has an impact on the performance of the company. ESOP companies were leaders during the pandemic, in fact they were 3.2 times more likely to retain staff. This leads to less turnover and increases job satisfaction. ESOP companies excel in the following areas:
- Employee Motivation
- Employee Retention
- Providing Employee Training
- Keeping Jobs Local
- Counteracting Wealth Inequality
- Contributing to Business Health and Longevity
What are the benefits of an ESOP to our clients?
As an ESOP every individual at MSI has a vested interest in our client’s overall experience. We strive to make sure that we offer a world-class experience in all aspects of our business. Some of the ways clients benefit from partnering with MSI is as follows.
- The importance of customer service and client experiences is cultivated in all areas of the company. From Sales to Service to Billing, we all understand the importance of professionalism, and that we all impact the client experience.
- ESOPs often have better retention due to job security and satisfaction. This means that your interactions with our associates will often be with experienced employees, with years of product knowledge or experience in customer service.
- ESOPs have a built-in succession plan, ensuring no interruptions in service that may occur if a provider suddenly closes, or is sold. This can help ensure long-term success for both the customer and the company.
As we celebrate national ESOP month, MSI would like to thank the 250+ employee-owners who excel in serving our clients and helping MSI continue to be a leader in our industry. To learn more about MSI and how we have helped our clients contact us today.