ELGIN, Ill. (1/25/13)--Lending Solutions Inc. (LSI) has established an employee stock ownership plan (ESOP).
The plan effectively transfers 30% ownership to the employees of LSI through a defined contribution benefit plan was formally introduced to the employees on Jan. 11.
An ESOP functions similar 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, Lending Solutions chairman and principal stockholder.
LSI's ESOP will be administered by a committee working in conjunction with a third-party trustee and a third-party administrator. Lending Solutions hired Innovative Shareholder Strategies throughout the development and introduction of the ESOP.
Lending Solutions offers lending center solutions and consulting services to credit unions.