100% Employee
Owned

An Employee Stock Ownership Plan (ESOP) is a retirement plan that gives employees ownership in the company they work for. Instead of just saving money like in a 401(k) plan, an ESOP gives employees shared ownership of the company over time. 100% of Pennoni is owned by its employees!

How It Works

1. Each year, Pennoni contributes shares (or cash to buy shares) into the Pennoni ESOP Trust based on its profitability.
2. Each year, employees receive shares based on salary and years of service. The value of the shares they receive is tax deferred.
3. Over time, the value of each employee’s account increases from the added shares they receive and from an increase in share price that is assessed each year based on the company’s profitability.
4. When employees leave or retire, they get paid for the value of their shares.

Benefits to Employees

• Ownership stake: You become a partial owner of Pennoni.
• Retirement savings: ESOPs are a form of retirement plan.
• No cost to you: Employees don’t buy the shares or contribute their own money — shares are given to them by the company.
• Potential for big payouts: As Pennoni grows and succeeds due to the efforts of its employee-owners, your ESOP account grows in value.
• Motivation and engagement: Employees have direct involvement in Pennoni’s success.
• Tax advantages: ESOP payouts can be rolled into other retirement accounts to defer taxes.