Newton Manufacturing Company Celebrates ESOP "Note Burning"
The employee owners of Newton Manufacturing Company, headquartered in Newton, Iowa, held a Note Burning Party to celebrate the final payment on a series of loans used to establish the company's employee stock ownership plan (ESOP). The event began with Mancil Laidig, president and chairman of the board, sharing with the employee-owners the history of Newton Manufacturing's ESOP, followed by the "note burning" ceremony in the parking lot, and a cake and ice cream reception.
Laidig spearheaded the creation of the Newton Manufacturing Company ESOP, which was completed in 1988, during his initial term as president. In his remarks to employees, Laidig shared the story of the ESOP development and its role in keeping the company and employees in Newton. He expressed his appreciation to all of the employee-owners whose dedication and talent made this possible.
"This is an important milestone in the history of our great company," stated Laidig. "Because of the ESOP, our employee owners will always have a say in the operations of the company."
After Laidig's remarks, employees gathered outside in the company's parking lot, where he was joined by Pam Blackledge, the company's longest tenured employee with 42 years of service, to burn the notes of the initial and final transactions.
An ESOP is a retirement plan in which employees, through a trust, hold an ownership interest in the company. The company funds the ESOP through common stock repurchase, recycled shares and other contributions to the ESOP trust, which are then allocated to employees. Employees receive distribution from their personal ESOP account when they retire or otherwise leave the company.
For more information, visit www.newtonmfg.com.