Comparing the Four ESOPs

The four ESOP companies examined in this study—Colorado Pool and Spa Scapes (CPS), GHPhipps Construction Companies (GHPhipps), Sky Blue Builders (SkyBlue), and Stone Age Inc. (StoneAge)—share the fundamental structure of an ESOP but exhibit significant differences in their maturity, the specifics of their share distribution, their financial stability, and the maturity of their ownership culture.

Here is a detailed breakdown of the differences and similarities across these four ESOPs:

Differences Between the Four ESOPs

The primary differences relate to their age as an ESOP, their approach to financial benefits beyond the ESOP account, and the scope of employee eligibility.

1. ESOP Maturity and Financial Stability

The age of the ESOP strongly correlates with current financial realities and employee sentiment regarding the benefit's value.

Company	ESOP Age / Maturity	Financial Stability/Debt Status	Employee Sentiment on Value
GH Phipps	Established/Mature (ESOP established in 2000; over 20 years old).	The company has not had to pay off the debt from the original purchase, often using life insurance policies to cover the costs, creating financial stability.	Employees are highly confident in its value, often having more in their ESOP than in their savings, providing hope for retirement. The contributions are often generous (e.g., 25% of eligible income).
Stone Age	Established (Went live around 2016).	It is a stable, transparent company that has experienced significant growth.	Employees see their accounts growing significantly and quickly. The ESOP provides a long-term retirement cushion.
SkyBlue Builders	Young/Fledgling (Converted in March 2024).	Highly leveraged; they are paying back loans to Apis & Heritage (A&H) and a bank over a projected four to five years. They are actively experiencing high growth.	The ESOP is currently seen as a "vague idea" because the first valuation (Statement Day) was delayed and share value is not yet tangible. Employees struggle to see immediate value.
Colorado Pool & Spa Scapes (CPSS)	Young(Converted in March 2021).	Highly leveraged; projected debt payoff of 15 years (with a goal of 10 years). The share value is currently "low" due to debt repayment.	Employees, particularly younger ones, struggle to see the ESOP's value because of the low share price and lack of immediate cash. It is viewed as a "vague idea".

2. Eligibility and Share Allocation Basis

All four companies base share allocation on employee compensation, leading to inherent financial inequality, but they differ slightly in which employees are excluded or included.

GH Phipps: ESOP is exclusively for overhead employees and professional titled jobs (approx. 218 employees). Skilled labor in the field is unionized and not part of the ESOP. Shares are allocated based on a percentage of eligible income (e.g., 25%).
StoneAge: All employees, including warehouse staff, participate. Share distribution is based on salary, which means higher-earning VPs receive larger portions. While some employees believe distributions should be equal, management defends the salary-based distribution as rewarding contribution.
SkyBlue Builders: Employees must be 18, have 12 months of service, and 1,000 hours of work. Shares are distributed based on the salary or income ratio, capped at $300K.
Colorado Pool & Spa Scapes: Employees must work a minimum of 1,000 hours per year. Shares are distributed based on hourly wages and the number of hours worked.

3. Vesting Schedule

There are two primary vesting periods among these companies:

Five-Year Vesting (GH Phipps, StoneAge, SkyBlue): These companies require five years for an employee to be 100% vested. The five-year mark is a recognized point of high turnover at GHPhipps.
Three-Year Cliff Vesting (Colorado Pool & Spa Scapes): Colorado Pool & Spa Scapes has a more aggressive vesting schedule, where shares are 100% owned after three years.

4. Complementary Financial Benefits (Cash Payouts)

The existence and timing of cash bonuses or profit sharing varies widely:

StoneAge offers both profit sharing (typically distributed twice a year, often equal to a full paycheck) and mostly competitive salaries.