Employee Ownership

What does it mean
to be employee
owned”?

At KE&G Construction, our employees aren’t just part of the team—they’re the owners. Every full-time employee has a unique opportunity to become a shareholder, with no cost to them. We’re proud that 100% of our company stock is owned by our employees, a distinction that only 1 in 200 businesses in America can claim. This shared ownership fuels our commitment to excellence and sets us apart in the industry.

Our Story

The Difference

The KE&G ESOP is more than just a retirement plan—it’s a pathway to ownership. Since 2006, our employees have had the incredible opportunity to own a piece of KE&G Construction, Inc. at absolutely no cost to them. It all started when the KE&G Owners sold 49% of the company’s stock to the newly formed ESOP, thanks to a significant company contribution and a loan. By 2014, with the original owners retiring, KE&G Construction made the bold move to purchase the remaining 51%, completing the journey to 100% employee ownership. Today, every eligible employee is not just building a career—we’re building our futures as owners of KE&G.

The Ownership Advantage

Employee ownership creates a powerful connection between the company’s success and your financial success. As an employee, your ideas, effort, and teamwork directly fuel our company’s growth. The collective work of you and your fellow employee-owners drives our performance higher, increasing the value of the business. And as the business thrives, so do you—this success flows back to you in the form of shares, turning your hard work into real dollars in the bank.

Long-term wealth building

Employee ownership is your path to long-term wealth building. While we can’t promise instant riches, your commitment to KE&G means that our success becomes your success. The future may be uncertain, but this graph illustrates a potential outcome based on what management believes are reasonable expectations for our future performance. While we can’t guarantee these results, we can offer you a glimpse of what’s possible when you’re an owner in the journey ahead.

Assumptions:

  • Salary = $40,000
  • Current Age = 35
  • Balance as of 12/31/19 = $0
  • No salary change
  • 2019 Contribution = 18%
  • 401K Rate of Return = 3%
  • Annual Company Contribution = 10%
  • 401K Annual Contribution = 3%

DISCLAIMER – This infographic is solely for illustrative purposes and should not be relied upon in any way and should not be legal, financial, tax, or other professional advice. KE&G does not promise or guarantee the accuracy of the results or the relevance of their specific circumstances.

MORE RESOURCES

2023 Employee
Ownership Month


ESOP Month Celebrations

Employee Ownership F.A.Q.

ESOP Definition – What is it? How did it begin?

  • An ESOP is a company funded retirement plan that purchases KE & G Construction, Inc. stock for eligible employees at NO cost to the employees.
  • In 2006 the KE & G ESOP was formed and the KE & G Stockholders sold 49% ownership of KE & G’s capital stock to the KE & G ESOP.
  • This purchase was made possible with a contribution of approximately 45% of the purchase price and a loan from KE & G Construction, Inc. to the KE & G ESOP. The contribution was a gift to the ESOP from the company, and the first loan was repaid from the ESOP’s share of company profits in 2014. In June 2014, the company purchased the remaining 51% of stock from the original owners who retired in 2014. We are now a 100% employee owned company.

Eligibility – When do I become an employee owner?

  • You will be eligible to participate in the Plan retroactively to the first day of the Plan Year (each January 1) during the Plan Year in which you first complete 1,000 Hours of Service.

Benefits – What’s so good about the ESOP?

  • The KE&G ESOP is an opportunity for you to gain stock ownership in a growing and profitable company, again, with NO cost to you.
  • Also, you have an opportunity to make a positive impact on the value of KE & G’s capital stock, and your retirement benefits, by thinking and acting like the employee stock owner that you are.

Risks – What could happen?

  • Just like the stock market, KE & G’s stock value can rise and fall.
  • With an ESOP, however, you have the ability to help protect KE & G’s stock value and benefit yourself by the excellent work and decisions that you make on a daily basis.

Trustees – Who are they and what is their role?

  • The Board of Directors of KE&G selects the ESOP Trustee. Their main responsibility is to manage the KE&G ESOP in the best interest of all KE&G’s employee stock owners.
  • Currently, the KE&G ESOP Trustee is Christopher W Albright.

Communication Committee – Who are they & what is their role?

  • The KE&G ESOP Communication Committee is a diversified group of employee stock owners whose main goals are to promote the KE&G ESOP and to participate in the education of all employee stock owners.
  • If you are an eligible employee stock owner then you are eligible to join this committee.
  • About one half of the committee is replaced each year

Vesting – When is it really mine?

  • It takes six years to become fully vested in the KE&G ESOP. This means that after six years of credited service (minimum of 1,000 hours per calendar year), 100% of your ESOP benefit will be available to you upon termination of employment; distribution is discussed below. You also will become 100% vested upon reaching retirement age, death or permanent disability while employed with KE&G.
  • If you leave KE&G prior to completing six years of credited service, the vested portion of your ESOP benefit will be pro‐rated according to the schedule below.
  • The KE&G ESOP Vesting Schedule is as follows:
    • 1 Year of Service 0%
    • 2 Years of Service 20%
    • 3 Years of Service 40%
    • 4 Years of Service 60%
    • 5 Years of Service 80%
    • 6 Years of Service 100%

Distributions – How do I get my money and when?

  • In the event you separate from service with KE&G because of death, permanent disability or retirement, distribution of your plan benefits will commence during the Plan Year following the Plan Year in which you separated from service. The details of this distribution are described in your Summary Plan Description.
  • In the event you separate from service with KE&G for reasons other than death, permanent disability or retirement, distribution of your Plan Benefits will commence either the end of the Plan Year following the Plan Year in which you separated from service or the sixth year following the Plan Year in which you separated form service depending on the balance in your account. The details of this distribution are described in your Summary Plan Description.

Other Information – Where can I learn more?

  • KE&G believes in educating its employee stock owners on all aspects of our ESOP program. We will be holding ESOP events and educational opportunities to aid in this effort.
  • The members of the ESOP Communication Committee are available to answer your questions regarding our ESOP.

This document is merely a representation of the Summary Plan Description. It is strongly recommended that you read and understand the KE & G ESOP Summary Plan Description provided to you when you first become a KE & G employee.

The Summary Plan Description summarizes the main provisions of the Plan. It is not the complete Plan. A complete copy of the Plan can be obtained by following the directions in the section of the Summary Plan Description entitled “Statement of ERISA Rights,” in case of any conflict between the provisions of the complete Plan and this document, the provisions of the complete Plan will control. Please note that the Plan Committee has final and exclusive authority to decide all questions arising in connection with the Plan.

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