An ESOP, or Employee Stock Ownership Plan, is a program that allows employees to own stock shares in the company they work for. This means that the workers have a stake in the company’s success and can benefit from its growth.

The Nussbaum ESOP is a unique opportunity to own a piece of Nussbaum and to benefit from its success. Each of us can impact the value of our company by the actions we take and the decisions we make each day. Together, we take ownership of the quality and success of our work.

You are automatically eligible for the ESOP if you work at Nussbaum and meet the three requirements. No paperwork necessary. If you are 18+ years old, you become eligible for the ESOP after 23 paychecks and 12 months of service. You are then entered into the ESOP as of the prior January 1.

None! This is an entirely company-funded benefit.

The value of stock allocated to you is based on your wages and can vary from year to year. On average, it will be about 6% of your wages.

*To receive the annual contribution for each year, you must receive at least 23 paychecks and be employed on 12/31 of that year.

The only way to receive additional Nussbaum stock is by working here and receiving the annual contribution. It is not possible to purchase additional shares.

While the ESOP doesn’t earn interest, your account’s value will increase as the share price increases.

Because Nussbaum stock is not publicly traded on a stock exchange, a valuation must be done every year to determine the share price. Valuation is based on past financial performance, projected future financial performance, and market conditions.

Once you meet the eligibility requirements for the ESOP, you will receive a statement in the mail every June.

• January | Nussbaum Accounting Team closes the fiscal year
• February | Sikich (accounting firm) audits our financial statements
• March | KSM (valuation firm) analyzes our financial statements and determines the Nussbaum stock share price
• April | Michael New (external ESOP trustee) reviews and approves the valuation
• May | Principal (third-party administrator) processes the stock allocation
• June | Nussbaum distributes ESOP statements

Vesting is the portion of your account that belongs to you and cannot be forfeited. Each year you work at Nussbaum, you become more vested in your ESOP account.

After 6 calendar years in which you have collected at least 23 paychecks.

Designate your beneficiary on your Principal.com account. Your beneficiary should be reviewed after major life changes (getting married, etc) and can be updated at any time.

There is typically a two-year waiting period to receive your first payment. If you have a vested balance, you will receive a letter from Principal (our third-party administrator) in the fall of the second year following your separation from Nussbaum with further instructions. Make sure we have your current mailing address!

*Exception: If you are over 65 years old and fully vested in the ESOP, the waiting period doesn’t apply, and you can actually start getting distributions even if you are still employed.