Overview

Hypertherm is proud to be associate owned, and part of an An Employee Stock Ownership Plan. An ESOP is defined as a type of private retirement savings plan that distributes ownership of a company to its U.S. based employees. When Hypertherm became an ESOP company in 2001, it was a natural extension of the company's well established team-based approach and ethic of shared rewards. Creation of the ESOP provided employees (or as we’re called at Hypertherm, associates) with a direct stake in the success of the company.

We believe all associates at Hypertherm are associated by the same vision, values, and culture. We also decided to customize our ESOP plan, which we affectionately refer to as the Hypertherm Stock Ownership Plan (HSOP). In 2004, the Global Stock Value Plan (GSVP) was established to extend ownership to our international associates.

What's so great about an ESOP company?

• Ownership creates an opportunity for all Associates to share in the wealth they help create. There is a high correlation between the financial success of the company, the stock price of the company, and Associate HSOP balances over time.
• Ownership often leads to increased productivity due to greater Associate participation in process improvements [Hypertherm's successful Continuous Improvement Activities (CIA) program is a great example].
• Owners better understand the relationship between personal performance and company results.
• Owners are involved in the business as "players" not just watching as "fans".

How does Associate Ownership work?

The Hypertherm Stock Ownership Plan (HSOP) and Global Stock Value Plan (GSVP) allocate Hypertherm stock or GSVP units over time and without charge to the qualified participants. Both plans are retirement savings benefits that help Hypertherm to attract and retain highly qualified Associates. Participants in the plans are vested after working three years of at least 1,000 hours.

Ownership Communications Team

The Ownership Communications Team fosters the Associate-Ownership culture at Hypertherm. It promotes the Hypertherm Stock Ownership Plan (HSOP) and the Global Stock Value Plan (GSVP) through education, communication and celebration. Team members represent a cross section of Hypertherm roles, locations and shifts. The team conducts HSOP and GSVP education. These sessions range from new hire orientations and basic refreshers to stock certificate training and targeted sessions for participants nearing retirement. Throughout the year, the team not only arranges new participant luncheons and delivers gifts for employment anniversaries, but also organizes special events ranging from food drives to celebration parties.

Celebrating Associate Ownership

The new Hypertherm Stock value is announced at a spring Company meeting annually. Dick Couch, President of Hypertherm, explains how the value is determined based on the analysis of an independent and external appraisal company. The value is driven by many factors including Company performance and public comparables. During National Ownership Month each year, the Associates hold a poster slogan contest, support the local community through a food drive, and have a day of celebration with cake and fruit. As our HSOP credo signifies, "Work Like Owners, And Think Like Customers," every day is a celebration of Associate Ownership.