LCS, Inc. Goes ESOP

Lender Consulting Services, Inc. has decided to take the firm into an Employee Stock Ownership Program. The initial move into the ESOP will grant a 30% stake in the firm for all bona fide employees. The ESOP will be under a trusteeship led and managed by Thomas E. (Ted) Duffy who will act as the liaison between the firm’s ownership and management team and the ESOP.

"A goal of the owners has always been to share the success of the firm with the staff and people that made our success possible" said Mark V. Li Puma, President and CEO of LCS, Inc. These same sentiments were offered by Robert J. Szustakowski, Chief Operating Officer of LCS when he relayed that "...our success is really driven by the entire team working towards a common goal and within the basic philosophy that what is best for the client is generally best for the firm."

It is somewhat telling that the ESOP is being initiated in the same year that the firm is celebrating its 10th anniversary.

Management has experienced very little turnover during the past 10 years and as a result implementing an ESOP seemed the natural way to proceed into the future. "Due to our loyal and experienced work force we have enjoyed great success, the ESOP can only serve to strengthen and enhance these relationships as we plan for the expansion and growth of this firm over the next ten years" Li Puma said.

The ESOP creates a pension fund for the employees of the firm wherein a portion of the profits are used to purchase shares of stock of the corporation in the name of the ESOP and with a portion of the profits going into a retirement account for each employee.

The ESOP is administered to by an independent third party Plan Administrator that tracks the allocation of corporate profits into the fund and distributes the fund proceeds and company stock shares based on the salary ranges and years of service of the participating employees. The retirement fund is managed by an independent third party as well.

The employees are not required to contribute any money to the plan whatsoever and are free to take their "share" of the accumulated funds and stock value with them if they leave employment or retire. The vesting schedule will stretch over a 5 to 6 year period before an employee is fully vested within the fund.

It is expected that the company may one day be 100% employee owned. With the creation of new and innovative products and services for the Financial Marketplace and a seasoned and professional staff, LCS is well prepared and poised in offering a long and mutually beneficial relationship with its staff, ownership and client base.

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