About SNL Distribution Services Corp

The SNL Mission …

1. We will be safe, professional, and accountable in everything we do.
2. We will be the low-cost provider, run lean and efficient, while maintaining the highest standards of safety, service and compliance.
3. We value Honesty, Integrity, and open communication for problem solving and continuous improvement.
4. We will be result-oriented, recognizing and rewarding employees based on their performance.
5. We are Built to Last, for the benefit of our customers and shareholder employees.

SNL is 100% Employee Owned.

What is an ESOP

An employee stock ownership plan (ESOP) is an employee benefit plan which allows the owner of the business to sell their business to their employees allowing each employee a beneficial ownership stake in the company. Employee’s pay nothing for their shares. 

How does the ESOP Work?

Companies file the plan for approval with the Department of Labor and the Internal Revenue Service. Once the plan is approved, the ESOP has 12 months to act. Companies will then set up an ESOP Trust, the ESOP Trust buys all the stock for the company. The ESOP Trust will then make annual contributions of stock to individual employee accounts through a compensation allocation formula. 

What is unique about Paladin’s ESOP?

Paladin’s ESOP is a retirement Trust. The shares of the Trust vest for each shareholder after five years with the ESOP. The shares cannot be withdrawn until the normal retirement age of 65. Withdraws from the ESOP must be taken at age 70.5. 

Other ESOP Features?

Within Paladin’s ESOP, accounts for withdraw trigger automatically at death or when a shareholder is placed on total disability. 

Upon reaching 10 years of service in the plan, the shareholder is given the opportunity to diversify up to 25%. At 10 years in the plan and age 60, the shareholder receives another opportunity to diversify up to 50% of their portfolio. 

Who manages the Trust?

Paladin’s ESOP is managed by a Trustee from Farmers National Bank. 

Oversight and Governance

• Paladin Capital is governed by a Board of Directors. 
• An annual audit of books is conducted by third-party independent auditors. 
• An Annual Stock Appraisal is conducted by Independent Certified Appraisal company 
• Each year Paladin conducts a Repurchase Obligation Study
• Annual 5500 filing (ERISA Requirement) with the Department of Labor 
• DOL and IRS Oversight 
• An Annual audit of the ESOP Plan is conducted by Carr, Riggs & Ingram. 

How do employees and ESOP’s perform?

From ESOP.org, “According to a 2010 NCEO analysis of ESOP company government filings in 2008, the average ESOP participant receives about $4,443 per year in company contributions to the ESOP and has an account balance of $55,836. People in the plan for many years would have much larger balances. In addition, 56% of the ESOP companies have at least one additional employee retirement plan. By contrast, only about 44% of all companies otherwise comparable to ESOPs have any retirement plan, and many of these are funded entirely by employees.” 

• ESOP’s are the primary model of shared capitalism in the United States. 
• Increases wealth of lower and middle-income levels 
• Improves shareholder performance 
• Provides greater rewards 
• Lowers Turnover 
• Improves Safety 
• Improves Quality 
• Improves Service
• ESOP’s make great acquisition vehicles

This company listing has not been verified by SNL Distribution Services Corporation. Information used to generate the content on this page was sourced from the page, http://www.snldsc.com/ on 07/21/2021. For questions or comments about the content listed on this page, please contact, [email protected]