Skin in the game.
Apache began its Employee Stock Ownership Plan (ESOP) in 1985 when our founder, Robert South decided to retire. With our ESOP, we can share in the pride of ownership and believe that being an ESOP company has benefited both our employees and customers alike. Since employees are invested in our success, we have built a stronger, more cohesive team. And this translates into better service for you and your customers.
What is an ESOP?
An ESOP is a tax-qualified, employee-owner retirement plan that provides a company's workforce with an ownership interest in the company. Unlike participation in a 401(k) plan, there are no up-front costs to the employees. Another unique feature of these plans is that assets in an ESOP, which are primarily stock of the company, are held in a trust. As the company’s value fluctuates, the share value increases or decreases accordingly. When an employee-owner retires or leaves the company, the value of the participant’s total ESOP benefits are determined by the most recent valuation and the vested portion is distributed in accordance with the plan.
Although many companies have partial employee-ownership, Apache is a 100% employee-owned company!
Pride of Ownership
We think the best thing about having an Employee Stock Ownership Plan is that participating employees get to share in the growth and prosperity of the company. This gives participants an opportunity to accumulate retirement savings at no cost to them. Employee participants are encouraged to better understand our business and how what we do as individuals contributes to the whole - we are one team pulling together to be successful! Following the end of each plan year, a participant receives a statement listing the number of allocated ESOP shares, the value of those shares, the value of other investments in the individual’s account, and the vested amount of the account.
Apache has an ESOP team, a group of employee-owners who represent various areas of the company. This team is committed to increasing employee knowledge of Apache’s ESOP and how our performance as individuals, departments and divisions impact stock value. We look forward to celebrating National Employee-Ownership Month each October and presenting employee-owners with Certificates of Participation each spring.
How Can I Learn More?
All employees are provided a Summary Plan Description, a Summary Annual Report, and an annual statement and are informed of plan changes as they occur.