It is our great pleasure to announce the creation of the new IPMG Employee Stock Ownership Plan (ESOP), which has turned over 100% of the ownership of IPMG to our employees.
If you are not familiar with ESOPs, they are federally regulated employee benefit plans that allow employees to grow their retirement income at no monetary cost to them, while being able to share directly in the success of the company. Currently, there are an estimated 7,000 ESOPs in the United States with about 13.5 million participating employees. Research shows ESOP companies are more productive, faster growing, more profitable and have lower turnover — benefits that accrue to all stakeholders including the retirement accounts of the employee owners. To help you better understand what IPMG will look like with an ESOP, we’ve listed below a few commonly asked questions and answers.
Who will be responsible for the leadership of IPMG?
There will be no change in the leadership of the company. The same individuals who currently serve in administrative and management positions will continue to do so. Additionally, the IPMG Board of Directors will maintain its ongoing responsibility of company oversight, with the addition of new members chosen specifically for their areas of related expertise. Those currently in Senior Leadership positions will continue to provide input into our company policies and procedures. IPMG's Employee Advisory Committee, which is comprised of Case Managers, Managers, and other positions to represent each team of employees throughout the state, will continue to provide feedback and direction on our company to Leadership. Lastly, we have created an ESOP Communication Committee that provides feedback and direction on promoting our company and educating our employee-owners on the ESOP.
What does the creation of an ESOP mean for the people that we serve?
The creation of an ESOP means that their case managers will have even more reason to be committed to providing the best possible case management services. History has shown that employees who have a vested interest in the success of the company are more dedicated to ensuring that their jobs are performed in an exemplary manner. They also tend to stay with the company for longer periods of time, which helps to ensure consistency for the individuals they serve.
How will IPMG employees benefit from having an ESOP?
The ESOP will provide IPMG’s employees with the ability to accumulate equity holdings in the company, at no cost to the employee. They will have the ability to directly affect the success of the company by their own performance, and to share in that success in the form of shareholder dividends. These dividends are provided in addition to, and in no way affect, any other retirement program in which the employee may be invested.
IPMG as a company, of course, will benefit as well, as the satisfaction of the individuals we serve and of our employees are integral components of our overall success. We anticipate that this decision will lead IPMG to even greater levels of achievement and excellence over the long term, and will help to support our vision of providing individuals served with case managers who are expert navigators of the Medicaid Waiver system.
What did IPMG's employees say about this announcement?
"I liked that the founders are doing long-term thinking/planning for future continued success of our company."
"I am so excited about the ESOP! I really appreciate and am grateful to the founders for being so innovative in thinking about the company's future. It really shows how much they care about their employees and the individuals we serve. Thank you!!"
"What a fantastic opportunity for our future as employees and a company as a whole!"
"As always, IPMG proves that they really care about us as employees. We are not just a number in a large company, which is appreciated!!"