|
|
|
After meeting with the employee-owners and officials of Phelps County Bank on Wednesday, U.S. Representative Jo Ann Emerson (R-Cape Girardeau) reinforced her commitment to promote employee stock ownership plans for other companies.
“I don’t know why there aren’t more Employee Stock-Ownership Plans (ESOP),” Emerson said. “Employees have a vested interest in their company’s success.”
Phelps County Bank (PCB) in Rolla is only one of two or three banks in the U.S. that is 100 percent employee owned, said Bill Marshall, PCB chief executive officer and employee-owner.
With approximately 8,000 banks in the nation, many of which have a small ESOP percentage of ownership — less than 20 percent — PCB has seen the value of its stock increase from $20 a share in 1980, when it first set up the ESOP, to $351 a share at today’s price, said Marshall.
PCB became 100 percent employee-owned in 1993. The bank presently retains 85 employees.
“Our ESOP has been very, very successful over the years. If more companies would look at what ESOPs could do for the economy, with sharing capital, wealth growth and the sense of responsibility felt by its employees, more companies would embrace an ESOP,” Marshall explained to Emerson.
According to Marshall, approximately 15 percent of the bank’s employee-owners’ salaries are contributed into the ESOP yearly — with no employee matches and funded entirely by the bank.
“At retirement, whether or not Social Security still exists, it’s not going to be an issue for these employees,” Marshall said. “A lot of our employees are looking at retirement in their 50s.”
Aside from assuring its employees receive a solid retirement fund, PCB also managed to funnel $1.2 million into community projects the past 13 years, said Marshall.
“It’s not how much you take with you, but how much you leave someone else,” Marshall said.
According to Marshall, recent legislation proposed by the Federal Reserve Board would require lenders to prove that borrowers have the ability to repay their loans.
Emerson, citing the recent failures of Freddie Mac and Fannie Mae, said, “We’ve had numerous problems with the banking industry, particularly with subprime rates, and we (Congress) don’t always make good decisions when considering the problems we’re encountering.
“I’m not going to vote for bailouts when the majority of our banking institutions are doing such a good job,” Emerson said.
Other employee-owners of PCB told Emerson of their personal experiences with employee ownership, including examples that illustrated the personal responsibility felt by the them and other employee-owners.
Before Emerson departed, the employee-owners presented a plaque to her for which PCB was awarded by the Wall Street Journal in October for being one of the top 15 small workplaces in the country.
After meeting with the employee-owners and officials of Phelps County Bank on Wednesday, U.S. Representative Jo Ann Emerson (R-Cape Girardeau) reinforced her commitment to promote employee stock ownership plans for other companies.
“I don’t know why there aren’t more Employee Stock-Ownership Plans (ESOP),” Emerson said. “Employees have a vested interest in their company’s success.”
Phelps County Bank (PCB) in Rolla is only one of two or three banks in the U.S. that is 100 percent employee owned, said Bill Marshall, PCB chief executive officer and employee-owner.
With approximately 8,000 banks in the nation, many of which have a small ESOP percentage of ownership — less than 20 percent — PCB has seen the value of its stock increase from $20 a share in 1980, when it first set up the ESOP, to $351 a share at today’s price, said Marshall.
PCB became 100 percent employee-owned in 1993. The bank presently retains 85 employees.
“Our ESOP has been very, very successful over the years. If more companies would look at what ESOPs could do for the economy, with sharing capital, wealth growth and the sense of responsibility felt by its employees, more companies would embrace an ESOP,” Marshall explained to Emerson.
According to Marshall, approximately 15 percent of the bank’s employee-owners’ salaries are contributed into the ESOP yearly — with no employee matches and funded entirely by the bank.
“At retirement, whether or not Social Security still exists, it’s not going to be an issue for these employees,” Marshall said. “A lot of our employees are looking at retirement in their 50s.”
Aside from assuring its employees receive a solid retirement fund, PCB also managed to funnel $1.2 million into community projects the past 13 years, said Marshall.
“It’s not how much you take with you, but how much you leave someone else,” Marshall said.
According to Marshall, recent legislation proposed by the Federal Reserve Board would require lenders to prove that borrowers have the ability to repay their loans.
Emerson, citing the recent failures of Freddie Mac and Fannie Mae, said, “We’ve had numerous problems with the banking industry, particularly with subprime rates, and we (Congress) don’t always make good decisions when considering the problems we’re encountering.
“I’m not going to vote for bailouts when the majority of our banking institutions are doing such a good job,” Emerson said.
Other employee-owners of PCB told Emerson of their personal experiences with employee ownership, including examples that illustrated the personal responsibility felt by the them and other employee-owners.
Before Emerson departed, the employee-owners presented a plaque to her for which PCB was awarded by the Wall Street Journal in October for being one of the top 15 small workplaces in the country.
