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Employee Ownership

Employee Ownership

Investing in your Future

The Board of Directors of Loureiro Engineering Associates, Inc. adopted the Loureiro Engineering Associates Employee Stock Ownership Plan (ESOP) so that all eligible employees could become owners of Loureiro Engineering Associates, Inc. without having to invest their own money to purchase stock. The Plan was established effective January 1, 1998. Company stock is held in a trust for the exclusive benefit of the Plan participants. The ESOP must, by law, be operated at all times and in all respects in a prudent and non-discriminatory manner for the exclusive purpose of providing benefits to participants in order to qualify as an Employee Stock Ownership Plan. ESOPs are generally similar to and subject to the same broad rules as other types of employee retirement plans like profit sharing or 401(k) plans. However, there are some key differences:

  • The ESOP invests in Company stock rather than in a diversified portfolio of assets.
  • The Company stock is generally valued only annually at the end of the Plan year.
  • There are some special rules about when and how you will receive your vested account balance.
  • No employee contributions or salary deferrals are required or permitted.

Empowering Employee Ownership

In addition to the retirement plan aspect of an ESOP, the company established a committee of Loureiro employees to encourage and foster an ownership culture amongst employees by providing education and communication between employee owners (past and present) and trustees. The committee strives to promote an inclusive workplace that mutually benefits each individual and the company as a whole.  Any employee can volunteer to serve on the ESOP committee. On average we have 9 employees with representatives from all Loureiro offices greater than 12 employees. Each member serves a minimum of 2 years along with two co-chairpersons who serve for 5 years.  The purpose of the committee is as follows.

  • To serve as ESOP advocates, communicating the ESOP and keeping employee ownership visible to the workforce;
  • To make recommendations to senior leadership about various ESOP related issues;
  • To provide two-way communications between employee owners and senior leadership; and
  • To contribute to improving business performance and achieving the company’s strategic goals.

Loureiro is committed to their employees and their long-term success with both the ESOP and a 401K program. This allows employees to be involved in their short term and long-term success.

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