We set up ownership guidelines of one to four times ownership compared to salary as an equity compensation goal for key people. We also wanted to be sure that all employees had the opportunity to participate. Providing the company with additional working capital, as well as providing liquidity to the employee-owners when they leave the company or retire, were other goals of the program. Most of all, in order to have an effective plan, we must make the investment in company stock financially attractive to all employees. The employee purchase plan provides for payroll withholding and bank loans which we guarantee.
Purchases are employee-initiated.
During the last few years we have developed our management-directed plans which include an employee stock option plan, a key employee stock option plan, a stock bonus plan and an incentive compensation plan. These management-directed plans are designed to direct stock to employees who will produce the greatest results for the company. The stock option plan is a nonqualified plan. Employees can participate after two years of service. The key employee stock option plan is a discretionary plan used by top management to attract and retain key employees.