July 8th, 2019
Stewart’s Shops Partners of Saratoga Springs, NY, have received their profit sharing statements. Existing ESOP accounts received approximately 13% growth on their existing accounts including over 6% in dividends.
This success is from the service resulting in increased operating profitability and the changes in the Federal corporate tax law.
The company has made a $17 million company contribution to the Employee Stock Ownership Plan, an increase of $6 million over the previous year. This contribution is about 17 percent of the ESOP participant’s 2018 gross pay.
There are nearly 1,000 ESOP Stewart’s participants with a balance of over $100,000, and 75 particpants with a balance of over $1 million. Nearly a third of these millionaires started out as hourly employees, and over a third are still actively working versus retired.
Stewarts’ youngest millionaire is 46 years old and a long-term shop manager.
In 1945 the Dake brothers purchased a small dairy and ice cream business in Ballston Spa, this was the first Stewart’s ice cream shop. Today, Stewart’s Shops employs over 4,500 people and operates over 335 shops across New York and southern Vermont. The company attributes its success to vertical integration, employee ownership and strong company values.
Employee Stock Ownership Plans or “ESOPs” are a viable tool for shareholders and companies to create smooth succession plans while enhancing employee productivity.
Menke & Associates, Inc. is the largest ESOP advisor in the country having created over 3,500 ESOPs in all 50 states, including Colorado, in our 45 year history.