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Most of you probably remember the ongoing discussions about moving MTSI towards 100% employee ownership. The plan is to accomplish this via an Employee Stock Ownership Plan, or ESOP as it is commonly referred to. This subject has been mentioned at several All-Hands Meetings as well as at the past couple Strategic Planning Meetings. We are moving forward with the ESOP and expect to have it formally in place later this fall with contributions to employee accounts starting in 2009. To accomplish this transfer of ownership I will be selling 30% of the company to the ESOP (i.e. all employees) and I will be carrying part of the repayment note for the sale of this stock. You will soon be an employee-owner and will truly have an increased stake in MTSI. Establishment of an ESOP accomplishes three main things;
1) Allows for a transfer of ownership without the reliance on outside buyers. We will continue to operate in the manner that we want to without the direction from outside investors or an acquiring company.
2) Places ownership of the company in the hands of all employees. Those that have made MTSI what it has become will be allowed to share in the profits and growth in value of the company.
3) Provides MTSI with a huge discriminator in the recruiting, hiring and retention benefit. You rarely see an ESOP among government contract companies. Successful companies, such as ours, typically sell to a large company. Establishment of an ESOP is proof positive that this is not our goal.
Although the outline for our ESOP was conceived a few years ago, the recent Strategic Planning Meeting reaffirmed to me that this was clearly the absolute best way to proceed. That meeting illuminated the fact that the company is highly motivated, well-led at the Group and executive level, populated with dedicated and knowledgeable employees, and growing at a pace that exceeds not only government contracting company rates, but the rates of most other market indicators. I firmly believe we will continue to overachieve. Even though I am selling some of my ownership to the ESOP I will continue to retain a significant ownership percentage and I will be right there with you as we continue to grow our company.
The ESOP will be one element of our retirement program with the other being an enhanced 401K. Think of it having a retirement program that invests in both MTSI stock as well as other mutual funds and investments. The new retirement program will provided greater overall benefits than our current retirement program. I look forward to providing each of you with more details on our new retirement program in the next couple of months.
If you know of any best of breed analysts, engineers, program managers, and other “top 5%” type people that might be available to fill one of our many current openings, tell them about our new ESOP (among other great benefits) and ask them to consider joining us. Our logo will be around for a long time and now is a great time to come onboard.
Thanks for your continued support.
Phil |
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