Lincoln Savings Bank Employee Ownership Month (EOM)
Thirty years ago in 1986, Lincoln Bancorp, the holding company for Lincoln Savings Bank, started an Employee Stock Ownership Plan (ESOP). Since that time, the ESOP has grown to be the largest shareholder of Lincoln Bancorp stock, owning 20.13% of the company’s outstanding stock.
October is Employee Ownership Month (EOM), which is a big deal here at Lincoln Savings Bank! We’ve been celebrating all month long!
What is an ESOP?
An ESOP is a benefit program that provides a company's employees with an ownership interest in the company, usually with no upfront cost to the employee. Here are some interesting stats about ESOPs from the National Center for Employee Ownership (NCEO), a nonprofit organization that provides resources and information on employee stock ownership plans (ESOPs).
- As of 2015, they estimate there are over 6,900 employee stock ownership plans covering 13.5 million employees.
- The average ESOP participant receives about $4,443 per year in company contributions to their ESOP and has an account balance of $55,836 based on an analysis of ESOP company government filings from 2008.
- ESOP companies grow 2.3% to 2.4% faster after setting up their ESOP than would have been expected without it according to a 2000 Rutgers study.
- Like pictures? Check out our ESOP Infographic.
Why do we Celebrate Employee Ownership Month?
Lincoln Savings Bank CFO, Emily Girsch, explains why it’s important to celebrate Employee Ownership Month. “We want to recognize and celebrate our employee owners. We also like to have a little fun. We use the month to educate our employee owners on how the ESOP works and ensure our employees understand how their goals align with the goals of our other shareholders.”
Throughout the month, Lincoln Savings Bank employees play games and participate in contests. Prizes are awarded and each Friday, employees are encouraged to wear their bright green Lincoln Savings Bank employee owner t-shirts, which make Lincoln Savings Bank employees hard to miss if you see them out in the community.
Acting Like Owners
Employees at Lincoln Savings Bank often talk about “acting like owners”. As owners, they have a stake in the success of the company, and understand that the financial success of their customers translates to their own financial success as the company grows. That growth happens by putting the needs of the customer first, ensuring loyalty and repeat business. It also means employees have an eye on the bottom line, eliminating unnecessary expenses and looking for continuous improvement in all areas of the business. Additionally, they work as a team to deliver the best financial products and services available. Lastly, our employees give back to the communities where they live and work.
The ESOP has had a significant, positive impact for Lincoln Savings Bank employees. It’s well worth a month of festivities to celebrate Employee Ownership Month. If you want to know more, just ask any Lincoln Savings Bank employee about how they feel being an employee owner.
Lincoln Savings Bank, Member FDIC