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Great Falls Business Owners Explain "ESOPs"

By KFBB News Team

Story Created: Oct 26, 2011 at 6:14 PM MDT

Story Updated: Oct 26, 2011 at 6:14 PM MDT

Local business owners say they're spreading the wealth in Great Falls by offering long term employees stock ownership plans or ESOP’s.

It’s a structure that is set up and its federally recognized, so the employees are then part of a trust that then owns either a 100% of the company or some portion of the company," said Sletten President Erik Sletten.

Today at Sletten Construction company, ESOP’s were the main topic of conversation --- that and pie.

Beyond just being a gluttonous getaway from work, the event used pie as a delicious symbol for an ESOP or an employee benefit plan that turns the employees of a company -- into owners.


"I am the owner," said Pacific Steel & Recycling employee Shirley Forbes. "Anytime someone calls and says 'I'd like to speak to the owner' I say 'speaking.'"

It’s a retirement fund provided by the company. Every year the company will give shares of its own stock to employees, which the employee can't touch till they retire. And once they retire, they have an account that averages around $195 thousand dollars.


"Lots of employees have retired and lived the American dream, retiring with millions of dollars," said President of the Northwest ESOP Assn Ron Hayes.

Shirley Forbes has been working at Pacific Steel & Recycling for 25 years and is preparing to retire in seven years. Along with a Roth IRA she can rely on her ESOP to support her.

“With a 401K…you have to put money in,” Forbes said. “With and ESOP, the company puts the money in. So if the company does better, you’re doing better.”

When i asked why more companies dont offer stock ownership plans -- folks at the social said they didn't have a clue since they increase productivity in employees which in turn boosts revenue

But if a company goes under...so does the owner slash employees retirement fund and


With this in mind...they push they're employees to diversify -- have some money in an ESOP, a 401 K or a Roth IRA.

"And many employees that have ESOPs also have 401Ks," said Arthur Sims of the Davidson trust. "So they give people the diversity of having a plan they control and can make other investments, then they own the company stock as well."

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