Transitioning To An ESOP What You Need To Know David Messe, president of California-based supplier Pinnacle Designs, explains how his company has benefited from an employee stock ownership plan. By: John Corrigan AFTER MORE THAN 40 YEARS IN BUSINESS, San Fernando, California-based supplier Pinnacle Designs (PPAI 112704, Silver) – named one of PPAI’s Greatest Companies To Work For in 2024 – transitioned to an employee stock ownership plan on December 31, 2023. An ESOP is a qualified retirement plan that gives eligible employees – at no cost to them – ownership interest in the company in the form of stock shares. Ultimately, an ESOP aligns the financial objectives of the company with its workforce. • More than 6,300 companies in the United States have an ESOP, according to the National Center for Employee Ownership. Here’s how it works: A company sets up a trust fund into which it contributes new shares of its own We felt our employees have been such a big part of our success that if there was a way for them to become owners, we should do it. —David Masse kozhedub_nc / PeopleImages.com - Yuri A / Shutterstock.com 24 • NOVEMBER 2024 • PPAI Voices | Your Business
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