1. Organization of the Stone Age ESOP

Stone Age transitioned to an ESOP structure around 2015. The founders viewed the ESOP as a necessary path to continue sharing the company with employees after their previous structure (an S Corp) reached its limit for selling shares to new employees. The ESOP is primarily organized as a long-term wealth-building vehicle and retirement cushion.

• Ownership Acquisition and Vesting: ESOP shares are described as a "gift" or a "completely free retirement program," as employees do not have to purchase them. Stone Age has a five-year vesting period. Once the employee is fully vested, they "take all of that" equity if they leave or retire. Although full access is delayed, employees can track contributions "right away" after receiving their first ESOP statement, which allows them to see how their daily work affects the account's value immediately.
• Financial Structure: The ESOP's value is determined by an annual stock valuation. This valuation is conducted by a board of trustees that audits the company’s forecasting and inventory holding values.
• Governance: Strategic decisions are made by the board, which includes the CEO and four or five outside business owners/CEOs. While there is no direct employee involvement on the board aside from the CEO, the ESOP trustee now serves as the president of the board to maintain employee ownership representation. Large decisions are disseminated from the board to management levels for input before being implemented.
• Information and Education: Financial data, including cost of goods sold and net revenue, is shared in monthly company meetings, which are often described as "pep rallies". Information is also accessible via the company intranet ("Slate"), which includes ESOP calculators. The company established ESOP ambassadors and financial classes to help employees understand complex financial terms and their ESOP statements.
• ESOP Logistics
  • The company contributes 12% of eligible wages to the ESOP annually.
  • Employees become eligible after one year and are fully vested after five years.
  • 10% of company profits are allocated to a profit-sharing pool, distributed twice per year (July and January) based on salary. Employees commonly describe this as being roughly equivalent to one paycheck — “a good little bonus.”
  • International employees participate in a mirrored ESOP with different tax treatment.
  • An “Own It” mindset is central to the company culture and reinforced through performance management, training, and regular employee surveys.
  • The company maintains a standard hierarchy (CEO → VPs → Managers → Employees) with four organizational levels.
  • Employees do not have representation on the board; leadership has intentionally chosen to keep board discussions limited to executives.
  • Monthly company-wide meetings are held to review financials and share updates.
  • The company’s intranet platform, Slate, hosts training resources and an ESOP calculator to help employees understand ownership value and benefits.

2. Financial Benefits Offered to Employees

The combination of the ESOP and benefits creates significant financial security for Stone Age employees, focusing on both long-term wealth and immediate support.

A. Long-Term Wealth (ESOP)

The ESOP is viewed as a "secondary 401k account" that sits separately and grows every year.

• Retirement Security: The ESOP provides a tax-free retirement cushion. Employees who achieve full vesting have a substantial nest egg. One long-term employee was able to retire and is "living her best life".
• Long-Term Value: Employees recognize that the value accumulated can be "significant" after only a couple of years of service, leading to hope for their family's future. The ESOP "rewards loyalty" and longevity.

B. Immediate and Current Benefits (Wages and Profit Sharing)

Stone Age supplements the long-term ESOP with annual cash payouts and competitive compensation.

• Profit Sharing: The company practices profit sharing, typically distributed twice a year (around summer and January/Christmas). These distributions are often described as being roughly equivalent to a full paycheck.
  • This cash infusion helps employees cover significant expenses, such as paying down personal debts, recovering from holiday costs, or mitigating large unplanned bills like plumbing or electrical system replacements.
• Competitive Compensation: Employee salaries are benchmarked against the industry to be competitive. Some employees experience dramatic pay increases as they gain knowledge and take on new roles. One employee noted a $15,000 pay increase over three years. However, employees in lower-ranking positions expressed that they took a pay cut to work at the company.
• Family Support and Financial Planning: The company offers free financial planning and classes. Stone Age offers 12 weeks of fully paid maternity leave, combining state and company contributions. The company also provides practical advice (e.g., advising a pregnant employee to save $1,200 for hospital costs), which is characterized as unique and helpful for financial security.

3. Emotional and Cultural Benefits for Employee Owners

The ESOP provides the "foundation" for a deeply invested and supportive corporate culture, often referred to as the "Own It" mindset.