ESOP Recruit

Find out the benefits of working for an employee-owned company

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It pays to be employee owned

(literally)

YOUR GUIDE TO READING YOUR ESOP STATEMENT

This is the value from your 2018 statement.

Shares contributed by the company for 2019.

Market value increase on last year's shares.

Allocated shares forfeited by former employees.

Your percentage is based on the ESOP plan’s vesting schedule. Year 1 = 0% Year 2 = 20% Year 3 = 40% Year 4 = 60% Year 5 = 80% Fully vested in year 6.

It's basically a fancy way of saying we're employee-owned.

Employee

Stock

Ownership

Plan

What is an ESOP, and why should I care?

Answer

What does that mean exactly?

This means that every year, employees receive shares in USA Mortgage. The longer you work for USA, the more shares you will receive. Once you retire, or leave the company, USA will buy back the shares in exchange for their current value. The better the share price, the more money you get!

Answer

That sounds nice. Are there other advantages to working for an employee-owned company?

We’re glad you asked!

Scroll down for more info!

People that work for employee-owned companies experience:

More retirement savings

More net worth

Better job security

Better job compensation

Better work culture

Employee-owners have more than twice the average total retirement balance of Americans nationally.

Employee Owners

Standard Employees

$170,326

$80,334

More retirement savings

Source

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Median household net worth is 92% higher for employee-owners than non-employee-owners.

More net worth

Source

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In 2010, adults working at employee-owned companies were laid off less than those working in the private sector overall.

Better job security

Private sector lay-offs

Employee-owned layoffs

12.1%

2.3%

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26% of Americans working for employee-owned companies listed better compensation as a top perk.

Better job compensation

Source

26%

15% of Americans working for employee-owned companies said their company had a more personal and employee-friendly environment.

Better work culture

Source

15%

Source: Wiefek, Nancy, Nicholson, Nathan (December 2018), ESOPS and Retirement Security.

NCEO (May, 2017) Employee Ownership and Economic Well-Being

Results from a nationally-representative survey run by Certified Employee-Owned in June 2018 using Google Consumer Surveys. Total number of respondents = 1,500. Answers were filtered for coherence and relevance before being grouped with similar responses. In total 770 quality answers were used in this analysis. Results shown do not use weights provided by Google Consumer Surveys to adjust for sampling variance. Including weights does not meaningfully change results.

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First month

1,000 hours worked

6-year vesting mark

New opportunity

Retirement

The ESOP Timeline

How does it work?

Welcome to USA Mortgage! As a division of DAS, a 100% employee-owned company, all employees who work over 160 hours in a year are eligible to receive shares as long as you are employed at December 31 of the same year.

For each year you work 1,000 hours, a portion of your shares will vest. This means they are yours to keep -- though you won’t be able to cash them out until you leave the company or retire. From now on, a portion of shares will vest annually.

Congrats! Now that you’ve hit this major milestone, you’re fully vested.

I found another opportunity.

Aw -- we’d rather you keep working with us, but we’re happy for you. If you’re under 65, you’ll receive dividends five years after you leave -- the full sum will be paid out in installments over five years.

Retiring? How exciting! You can now cash out your vested shares, which is a nice extra nest egg (especially when paired with your 401K). If you’re over 65, you’ll receive 100% of your balance the year after you retire.

REtirement: employee-owned vs. traditional company

At an employee-owned company, yearly contributions of company shares can make a huge impact on your life. Here’s a short example of what it could mean for you.

Meet Natalie

Meet Bill

Employee-owned company

Non-employee-owned company

Year 25: January 2044 Over the course of a career, Natalie built substantial wealth as an employee-owner. Company shares help her retire early. As an employee-owner, she has created a substantial nest egg.

Company shares

$203,282

401K

$45,174

Company shares

401K

$45,174

25 yrs

6 yrs

2 yrs

Hired

Year 6: January 2024 Natalie continues to receive shares each year. As the company grows, Natalie’s shares also become more valuable. After 6 years, Natalie has over half a year’s salary in shares.

Company shares

$18,000

401K

$4,000

Company shares

401K

$4,000

19 years later

25 yrs

6 yrs

2 yrs

Hired

Year 2: January 2020 Bill and Natalie both get a 1% company contribution in their 401k. As an employee-owner, Natalie also receives a percentage of her salary in company shares (at no cost to her).

Company shares

$5,000

401K

$1,000

Company shares

401K

$1,000

4 years later

25 yrs

6 yrs

2 yrs

Hired

Hired: January 2019 Bill and Natalie start on the same day, work 40 hours a week, and make $18/hour.

Company shares

401K

Company shares

401K

2 years later

25 yrs

6 yrs

2 yrs

Hired

(These numbers are purely for example purposes.)

At an employee-owned company, everyone has a stake in the company’s success. Moreover, everything you do can ultimately impact the share price — and ultimately your distribution payments. Here are some small ways to make a big difference.

Bring in a reusable cup

Reduce printing and paper use

RSVP accurately to company events (so money isn’t wasted on headcount)

Negotiate costs on vendor contracts

Have free time? Volunteer to help a colleague

For loan officers and branches, reduce pricing exceptions

How can I affect share price?

Learn More

Want to learn more about the advantages of working for an employee-owned company?

Questions about your ESOP Statement?

What is a share price?

The monetary value of one share of the company’s stock. The value is determined once-a-year by an independent appraiser.

When will the employee get the money?

Distribution of the benefit in the ESOP account begins after the employee leaves the company or retires.

What is vesting?

The percentage of the employee's ESOP Account that is theirs and cannot be taken back.

Does an ESOP cost anything?

Nope! It does not cost anything!

How many employee-owned companies are there in America?

There are 6,000+ employee-owned companies in America with between 1.5-2 million employees. Here at USA Mortgage 100% of our stock is held by employees and that sets us apart (only about 1 out of 200 businesses in America can say that).

What does it mean to be employee-owned?

Everyone who works at the company is an owner! Ownership ensures that everyone builds wealth when the company succeeds.

ESOP FAQ!

Find out more about ESOPS!

DAS Acquisition, LLC dba USA Mortgage NMLS #227262. Not a commitment to lend. Additional terms and conditions apply. Licensed Lending Area: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, NE, NH, NC, OH, OK, OR, PA, SC, SD, TN, TX, UT, VA, WA, WV and WI. AZ License Number: 942577. Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act, Regulated by the CO Division of Real Estate, Georgia Residential Mortgage Licensee #33479, MA #ML227262, OH #RM.850291.000, Licensed under the Oregon Consumer Finance Act, OR License #ML-5723, TX: 2150 S. Central Expressway, Suite 310, McKinney, TX 75070, WA #CL-227262. Headquarters: 12140 Woodcrest Executive Drive, Suite 150, St. Louis, Missouri 63141, Toll Free: (888) 250-6522. For licensing information, go to: www.nmlsconsumeraccess.org