What is ESOP? A Look into Chatsworth Products’ Employee-Ownership Structure
May 30, 2017
Since its creation in 1991, Chatsworth Products (CPI) has been a proud ESOP company.
But what is ESOP?
ESOP stands for Employee Stock Ownership Plan, and is defined as a qualified contribution plan that provides a company’s workers with retirement savings through their investments in their employer’s stock, at no cost to the worker.
Through an ESOP structure, all full-time employees become beneficial owners or employee-owners, as CPI calls its employee family. Such ownership, combined with CPI's inclusive and participatory culture, motivates employees to think and act like owners, creating a strong commitment to the attainment of an ultimate and core purpose: delighting the customer through high-quality products and unrivaled customer service and technical support.
Recent studies find employee-owners and ESOP companies have proven benefits such as greater job security and higher wages, which are reflected in the employee-owners’ strong desire to create customer satisfaction.
CPI’s pride of ownership and the mutual trust and respect we feel for one another is reflected in the company's motto, "We're All in This Together." Watch the company overview video to learn more.
To learn more about CPI’s ESOP structure, visit our employee ownership page.