FAIRFAX, Va., August 6, 2021 (Newswire.com) - As of July 30, 2021, Foxhole Technology, Inc. is proud to announce its transition to an employee-owned company. Spearheaded by BDO USA, LLP, a leading financial advisory company, the announcement of the sale to the Employee Stock Ownership Plan (ESOP) was recently made to employees. The leadership team will remain onboard to continue pursuing the success and excellence Foxhole Technology customers have come to expect.
"Becoming an ESOP allows our employees the ability to share in the growth of the Company," stated Gus Tomé, President. "This is a key factor in our growth strategy - helping us develop talent, empower thought leadership and achieve critical impact success with our customers. Our employees are an essential component in our success. This structure allows them to reap additional rewards financially as the company grows, while the company will be able to attract and retain top cyber and application development talent so integral to our success."
In an ESOP, all stock is held in trust for the benefit of Foxhole employees. The plan, which allows employees to earn stock in the company, is designed as a long-term retirement benefit. Under the plan, all eligible employees earn an annual allocation of shares, and those shares are valued on an annual basis - as the value of the Company increases, the value of shares held in an employee's ESOP account also grow. Foxhole Technology will continue maintaining its 401(k) Plan, and encourages employees to utilize this added retirement plan to diversify their retirement assets.
"I've considered transitioning to an ESOP for several years, and I'm very happy it has finally come to fruition," said Founder and CEO, Wes Hester. "As a leading cyber and application development security services firm, our hard-working, dedicated employees are the lifeblood of our company. Transitioning to an ESOP allows us to reward them for their commitment, while instilling greater employee satisfaction, reduced turnover and a more rewarding work environment."
According to the National Center for Employee Ownership (NCEO), employee ownership companies outperform non-employee ownership companies by a wide margin, with growth about 2.5% per year faster in sales, employment and productivity than otherwise expected, while providing 2.2 times the total retirement assets as non-ESOP companies.