At an all employee meeting held December 18, 2009, K. Michael Hall, CEO officially announced that an ESOP had been formed and that all eligible employees were now stakeholders in the company. The plan officially began on October 1, 2008, the first day of HALL’s 2009 fiscal year. A contribution was made for fiscal year 2009 to get the plan funding started. The plan was set up my Menke & Associates, a national firm who specializes in the formation and administration of ESOP plans.
Mr. Hall said, ” As I began nearing retirement age and considered the future of our company, it seemed only right to me that it should be sold to the employees. Without the loyalty, dedication and hard work of this fine group of individuals, we certainly would not have grown as much as we have.”
“The Plan has two objectives,” Mr. Hall indicated. “First, to create a market for stock held by present owners without a sale to outside interests and, secondly, to enable employees to share in company ownership.”
“The result of the plan,” he continued, should be to increase employee incentives and provide them with long term retirement benefits. Basically an ESOP operates through a trust to which a company sells part or all of its stock. The employees are beneficiaries of the trust.”