PLI Sells Company to Workers
Workers at Plasticard Locktech International got the surprise of their life today. The executives of the privately held company announced they're selling the manufacturer to it's workers. PLI has created an Employee Stock Ownerhip Plan or ESOP which allows the company to place profits into a trust account held for workers. Workers are given shares of the company and are vested over time.
Employees were excited to learn the news and say they're happy the company "has a forward thinking strategy" for growing into the future. Executives say the ESOP will have huge benefits for workers who stay with the company but it will also give PLI a big corporate tax break. CFO and Founder Ron Levanthal says "that will allow the company to grow more rapidly by lifting the huge corporate tax burden." Workers profits in an ESOP are not taxed like corporate profits.
Workers say "it's great to have skin in the game" and they're excited about the future.
by Frank Fraboni