From New Owner to Retirement Ready: The ESOP Experience

As part of Lerch Bates’s Employee Ownership Month celebrations, employee-owners came together for a panel discussion that explored the value of employee ownership at every stage of a career. From newly vested employees to those preparing for retirement, the session highlighted how the Employee Stock Ownership Plan (ESOP) supports long-term financial security while strengthening the culture of ownership that defines Lerch Bates.

Moderated by retiring CFO John Arther, From New Owner to Retirement Ready: The ESOP Experience featured perspectives from Brian Koons, Senior Consultant; Jenna Martellaro, Sales & Marketing Coordinator; Mike Thompson, Regional Managing Director; and Roger Seley, Senior IT Specialist.

The discussion focused on how the ESOP impacts employee-owners throughout their careers and why its value extends far beyond retirement.

One of the key themes was the long-term financial benefit of employee ownership.

Reflecting on his experience, Mike Thompson shared:

“The ESOP is essentially free money; you don’t have to do anything to receive it but work hard and make sure the company grows. It has added a meaningful value alongside my 401k and other financial investments which then eases the financial stress of retirement. I do believe it should be an important part of every participant’s retirement strategy.”

For newer employee-owners, understanding the long-term impact of the ESOP can take time. Roger Seley encouraged patience and perspective when evaluating its value.

“I would say be patient and view the ESOP as one part of your overall financial planning. It may not seem like much at first, but over time, it can become a worthwhile additional benefit.”

Brian Koons shared a newer employee-owner’s perspective on learning more about the ESOP’s growth potential.

“When you enter the ESOP, you know that money goes into your account, but you don’t always understand what the growth will look like over time. Through meetings like this, we learn the historical performance of the ESOP and how the stock price increase has met or beat the S&P 500 in many of our previous years. That was surprising and really great to see as a new employee-owner.”

The conversation also explored why employee ownership is important not only for individuals but for the future of Lerch Bates.

John Arther explained:

“For our employee-owners, ESOPs are superior at investing in our employees, retaining employees, even in economic downturns, and provide a superior retirement benefit. For Lerch Bates as a company, ESOPs are better at creating sustainable, profitable growth by attracting and retaining the best people, the best employee-owners to help serve our external and our internal customers.”

When an audience member asked how to briefly describe the ESOP to a potential candidate, Jenna Martellaro highlighted the unique balance of personal and professional benefits that employee ownership provides.

“Being part of Lerch Bates and our ESOP is an opportunity to be part of something that is larger than yourself as a company, while also being able to prepare and take care of yourself for retirement. You get to enjoy all the things that make up an ESOP whether it is the culture, knowing your voice matters or sharing in the company’s success, and these benefits allow you to experience a career that will give back to you as much as you have put into it.”

As ESOPtober continues, sessions like this serve as a reminder that employee ownership is not a benefit that matters only at retirement. It creates value throughout an employee-owner’s journey, offering opportunities for growth, engagement, and long-term financial well-being from day one through retirement.