All qualified employees will be able to participate in new benefit plan
Elgin, IL, January 23, 2013 – Lending Solutions, Inc. (LSI) is excited to announce that as of December 20, 2012, the company has established an Employee Stock Ownership Plan (ESOP). The plan, which effectively transfers 30% ownership to the employees of LSI through a defined contribution benefit plan, was formally introduced to the employees on Friday, January 11, 2013.
The ESOP functions akin to an employee 401k or profit sharing program, where funds will be deposited annually based on the profitability of the company. “Transitioning to an ESOP model gives us the opportunity to reward many of our long-term employees for their commitment and hard work over the years, as well as attract new employees,” said Mark Johnson, chairman and principal stockholder of Lending Solutions. Lee Kolquist, chief executive officer adds, “We’re tremendously proud of what we’ve achieved over the past several years at LSI. Our employees have always taken great pride and ownership in their work, and now, with the ESOP, eligible employees will have the opportunity to earn a tangible stake in the company to validate that ownership.”
According to the National Center for Employee Ownership (www.nceo.org), there are approximately 11,500 ESOPs in the U.S. covering nearly 14 million participants. ESOPs must comply with special requirements of both the Internal Revenue Service and the Department of Labor. The NCEO also cites that companies with ESOPs grow 2.3% to 2.4% faster than comparable non-ESOP companies as measured by sales, employment, and productivity growth.
LSI’s ESOP will be administered by the Lending Solutions, Inc. ESOP Committee, working in conjunction with a third party trustee and a third party administrator. Lending Solutions engaged the services of Innovative Shareholder Strategies throughout the development and introduction of the ESOP. “An ESOP is a complicated transaction with a lot of moving parts,” states Kolquist. “Innovative Shareholder Strategies was there every step of the way, guiding us through the process with unparalleled commitment and expertise. The professionals from ISS took the time to understand our objectives and to structure a tailored solution beneficial to LSI, its shareholders, and its employees.”
About Lending Solutions, Inc.
Lending Solutions, Inc. has been a provider of lending center services and consulting programs for financial institutions across North America for 18 years. The company’s highly-trained, professional staff provides 24-hour lending and member service to over 300 of North America’s premier credit unions, banks, and mortgage companies. For further information on Lending Solutions, please visit the company’s Web site at www.lendingsolutions.com.
About Innovative Shareholder Strategies
Innovative Shareholder Strategies, LLC ("ISS") is a financial advisory practice specializing in ESOP consulting services. ISS was founded by Cally Johnson and Maria Pencheva in 2012 and successfully completed its first ESOP transaction within six months of starting operations.