EMPLOYEE STOCK
OWNERSHIP PROGRAM
WE OWN IT!
We are not just employees, we are employee-owners. We are driven by our purpose to deliver safe and reliable transportation solutions. Guided by our core values, we care about our employees as much as we do about our customers. If you’re ready to step into a business culture where you matter, we want to hear from you.
Technically, an ESOP is a retirement plan, similar to a 401(k). However, unlike a 401(k):
You pay nothing for your shares; The company makes all the contributions to your ESOP account
Your account balance is tied to the share value of our company, not external securities
All shares are held in a Trust governed by an administrator, called a Trustee
WHAT ARE THE BENEFITS?
Every year, we contribute to your ESOP account. Your account grows from these annual contributions and from the reallocation of any forfeitures (the non- vested balances) of former employees.
The annual contribution is discretionary and is allocated to participants based on a formula which takes into account hours worked, years of service, and compensation.
Driver Qualifications Include:
- 21 years of age or older
- CDL Class A
- Meet DOT & KKW Requirements
- Safety Conscientious
- Great Attitude
EMPLOYEE-OWNER RIGHTS & RESPONSIBILITIES
Each employee-owner at our company plays an important role in helping the company achieve success. In turn, the company respects the rights of each employee-owner and invests in their future success.
| RIGHTS As an employee-owner, you have the right to… | RESPONSIBILITIES And you have the responsibility to… | |
|---|---|---|
| 01 | Benefit financially from the success of the company. As an owner, each year you will receive shares in the company. Your ownership stake guarantees that you succeed when we succeed. | Understand your role in our success and contribute to that success by being a good steward of our resources. |
| 02 | Information that you need to do your job. | Help find solutions to our problems and share ideas for improvement. |
| 03 | Form great professional relationships at work. | Be a supportive team member and help us create a positive work environment for everyone. |
| 04 | Professional development, growth, and opportunities for internal promotion. | Create positive experiences for our customers and the people we come in contact with. |
| 05 | Have a voice and openly discuss workplace issues that affect you and the company. | Support management decisions and initiatives, consistent with our vision and values. |
OWNERSHIP CULTURE
YOU ARE A PART OF SOMETHING GREAT
We are an employee-owned freight service provider dedicated to delivering excellence. Our caring people, partnerships, state-of-the-art equipment, and innovative solutions make the difference.
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COMMITMENT
Every company operates for the benefit of its owners. Employee ownership means our leadership team is approaching the big decisions with your interests in mind. -
RELATIONSHIPS
Our people are in it for the long-term, which strengthens bonds, increases collaboration and fosters mentorship. -
ALIGNMENT
We put our people first because the better you perform as an employee, the better we all do as shareholders. -
ACCOUNTABILITY
We only succeed as owners if everyone contributes as employees. We hold each other and ourselves to high standards.
FAQs
What does it mean to be employee-owned?
It means that everyone who works at the company has the opportunity to become an owner! Employee ownership ensures that everyone builds wealth when the company succeeds.
What is an ESOP?
An ESOP is an Employee Stock Ownership Plan. Technically it is a retirement plan.
Your ESOP account is funded by annual contributions made by the company and the value of your account tracks closely with our success. You pay nothing for your shares and do not have to contribute to your ESOP account.
Is the ESOP open to all employees?
It is open to all employees who are over the age of 18 and have worked at least logged at least 250 hours in a calendar year.
Does this cost me anything?
It does not cost you anything!
What is Vesting
When do I get the money?
The goal of the ESOP is to give current employees an ownership stake in our company. As a result, distribution of the benefit in your ESOP account begins when you leave the company or retire.
Does this mean I can set my own schedule?
There is a difference between ownership and control. Ownership is about having a monetary stake in and an ability to have a positive impact on the success of the company. Control is about decision making. Just because you own shares of Coca-Cola doesn’t mean you get to pick the next flavor. We are still professionally managed and many of the normal rules of business still apply.
What can I do to help increase our share price?
As a team of owners, we all have a role to play in our success. Anything you can do to increase output or save us money will help raise our share price (and the value of our ESOP accounts). Even small ideas add up to big increases when we all do our part.
How do I learn more?
Ask your supervisor or an ESOP Communications Committee member.
How is an ESOP different from a company’s 401(k) plan?
There are two key differences between ESOPs and 401(k) plans. First, an ESOP invests primarily in an employer’s stock rather than “Wall Street” investments. While a 401(k) plan generally offers various mutual funds in which employees may invest funds. Second, 401(k) plans permit employees to contribute their own money into the plan, while ESOP contributions are entirely company funded and there is no employee contribution. The entry provisions are also different.
How is the price of the stock in the ESOP determined?
The price of the stock in an ESOP is typically determined on an annual basis by an independent valuation company working in conjunction with the plan’s trustee. The value is based on many factors, including the company’s current and projected performance, the performance of similar publicly traded companies, the outlook for the industry and the geography within which the company operates, and the overall economic outlook.
How are shares allocated each year?
Contributions for each plan year are allocated to participants who have worked at least 1,000 hours for the plan year and who are still employed by the company on the last day of the plan year –December 31st or have terminated employment during the plan year on account of Death, permanent Disability, or after reaching the normal Retirement date (age 65). On the basis of eligible compensation.
How often will my ESOP account balance change and how does my account grow?
An ESOP account balance will usually change only once per year. Employees will receive an annual statement that provides the financial activity for the year, including the updated stock value. Your individual account will grow based on annual company contributions, forfeitures and increased value of the company.
Do I have voting power in decisions of the company?
KKW Manangment will continue to make the day-to-day decision making, and hiring and firing decisions. The ESOP does not guarantee employment at the company. Only in special circumstances will there be a pass through vote to the participants.
If I leave KKW, do I still get to cash out my stock?
Yes, distributions are generally paid in equal annual installments over 5 years. If termination is on account of Death, permanent Disability, or Normal Retirement (age 65) payments commence by the end of the 1st plan year following year of termination. If termination is for any other reason, payments commence no later than the 6th plan year following the year of termination.
What do I have to do to sign up for ESOP?
Employees are not required to sign up to be part of ESOP. However to be a participant you must be 18 or older with one year of service with 250 hours. Annually participants must work 1,000 hours in each plan year to earn shares. Employees are advised to complete a beneficiary form to ensure benefits are paid to the designated beneficiary.
For any questions or feedback, please contact KKW’s ESOP Admin Department at (888) 332-4149 or email ESOPAdminCo@kkwtrucks.com.