Employee Ownership Drives Success

Anthony Book Long Haul Trucking

Employee Ownership Drives Success

Since Long Haul sent its first truck out on the roads over 35 years ago we have taken pride in being a company that offers our drivers opportunities to create successful careers. Of the many separators that make Long Haul Trucking an exceptional place to work as a driver, employee ownership opportunities are one that most other trucking companies cannot provide. Since becoming an ESOP (Employee Stock Ownership Program) in 2013, Long Haul has been fortunate to be able to offer company drivers the opportunity of becoming company owners. Employee stock accounts grow based on the amount of time and earnings that a driver accumulates at Long Haul. It has been rewarding for the company to watch long term drivers earn accounts worth over 6 figures of value. There are no fiscal contributions made from the employee in an ESOP. As retention and earnings continue to be two subjects of heavy focus for all trucking organizations, employee stock ownership is one of the many benefactors that puts Long Haul ahead of the competition.

Long Haul’s ESOP not only benefits our company employees, but independent contractors as well. Reason being is that the ESOP mentality has proven to help unite all departments across Long Haul, encouraging our employee owners to be the best professionals they can be and in turn offering a great working environment for our Owner Operators. Studies have proven that companies which operate as an ESOP tend to be more successful. Independent contractors that work for Long Haul can have faith in knowing that our team is exclusive in who we onboard as our next employee owner and want to only surround them with the best teammates available.

From a high level, working for an ESOP sounds like a great opportunity and when you dive into the details of how the earnings are accruing, it only becomes more attractive. Let’s examine 5 different drivers, all of which are at various points of their careers with Long Haul, to help illustrate what an ESOP can do for you. Our 5 teammates have each experienced a different amount of tenure with Long Haul ranging from 2 full years, up to 15. Keep in mind that our ESOP operates on a 6 year vesting plan which means any company drivers or employees that have worked for Long Haul less than 6 full vesting years won’t have full access to their total sum until reaching that mark. which promotes retention for Long Haul employees across the board.

Driver 1 (2 years vested) : Hired on in September of 2017, entered in the ESOP as of January 2019 and has accrued 2 full years of vesting, which puts their vested percent at 40%. Total balance of their account is $24,729 and at 40% vested has earned themselves $9,892. With nearly $10,000 already earned and a growing account, driver 1 can see their efforts being rewarded and with more years of work and additional vesting percentages ahead, will realize a strong fiscal reward for the great work they put forth as a member of the LHT Family.
Driver 2 (5 Years Vested) : Hired on in February of 2015, entered the ESOP as of July 2016 and was 80% vested as of our most recent valuation. With 1 more year to go before becoming 100% vested, this driver’s current vested account value at 80% is $56,550. However, this driver’s total account balance which they will be 100% vested in with 1 more year of work carries a total value above $70k. With 14k already waiting in the wings and another year of earning shares ahead, this driver is in position for an awesome valuation next year!
Driver 3 (7 Years Vested): Hired September of 2013 and since then has earned over 450 shares for themselves! With a current vested account balance of nearly $88,000.
Driver 4 (10 years vested): This driver that has stuck with Long Haul for over ten years has officially earned themselves an ESOP account valued above $110K by doing nothing more than providing us with their hard work and dedication.
Driver 5 (15 years vested): With a total vested account balance greater than $130k and compounding shares in their account, this driver is creating a nest egg in their ESOP that can help provide retirement stability and quality of life, all in the name of being an employee owner.

Above is a graph illustrating the ESOP earnings for each of the drivers discussed, and upward trajectory that equates to approximately $10k of value for each year vested in the program. Two patterns from the writing that are made clear within this image is that tenure and retention are undoubtably rewarded within the ESOP model, and with that reward comes incredible earning potential. As the trucking industry continues to face 2 key challenges centered on driver retention and earnings, we feel proud knowing that as an Employee Owned company, we are providing an opportunity for our company drivers to be well rewarded for their time and efforts.