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Top Questions About Employee Stock Ownership Program (ESOPs)

Believe the hype. ESOPs put you in the owner’s role and open a whole new perspective, drive, and potential for your personal and professional future. We’re dropping the answers to the top questions all about what it is and how it works. 

What is an ESOP?

An ESOP is an Employee Stock Ownership Program that grants shares of the company to vested employees. More than just a retirement plan, it’s a piece of the company pie. When team members are also owners, they’re personally invested in the success of the company and it shows in how they operate. 

How does it work?

After a certain amount of time with the company, employees and contractors would receive 100% of their shares paid out on a predetermined distribution schedule. At IDR, that timeline is after three years of employment and when the minimum hours have been fulfilled. If and when you leave anytime after you’re fully vested, the funds will be distributed in predetermined installments, or they can be rolled into an IRA.

Why would I want one?

Not many employers offer line-level team members a share of ownership and profits. Different from a 401k, you don’t pay into an ESOP, but rather, it is fully funded by the company. This is an uncommon opportunity with the potential for a big future payout. 

Find your dream role and own a piece of IDR!

IDR has offered an ESOP since 2010. We want to reward our team members for showing up as their best and moving the needle on company goals, each and every day. This benefit is available to all eligible employees and contractors of IDR, and we’re always looking for top IT talent to share it with! Browse current opportunities here or connect with a recruiter here.

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