CPI Blog

All About ESOP: What It Is and Why it Matters

November 11, 2021

Since our inception in 1991, Chatsworth Products (CPI) has been proud to call itself one of the nearly 7,000 Employee Stock Ownership Plan (ESOP) companies in the United States. 

As a company wholly owned by its employees, our core values are rooted in shared risk, responsibility, and accountability. This pride of ownership, along with mutual trust and respect, is perfectly encapsulated in our company motto: "We're All in This Together." 

What is an ESOP? 

An ESOP is a qualified contribution plan that offers employees retirement savings through investments in their employer’s stock—without any out-of-pocket cost to the workers. 

At CPI, this means every full-time employee becomes an "employee-owner," once they meet the requirements of the plan. Because we are business owners, we are encouraged to think and act as business owners, which, in turn drives productivity, performance, and active participation. 

Simply put, such unique ownership creates a strong commitment to the attainment of our core purpose: Delighting the customer with high-quality products and unparalleled service and support. 

10 Interesting Facts About ESOPs and CPI 

1. The concept of ESOPs was developed by economist Louis O. Kelso in 1956, who believed that employee ownership would strengthen capitalism by spreading wealth more broadly among workers and foster a more equitable society. 

2. ESOPs have seen tremendous growth, from just 1,600 in 1980 to over 6,500 today, covering more than 14 million employees across the U.S. 

3. ESOPs are regulated by the Department of Labor and the Internal Revenue Service, ensuring they operate with integrity and fairness. 

4. CPI employees receive their first stock allocation after completing a plan year and working at least 1,000 hours in that period. Share distributions occur when employees leave the company as fully vested members, according to our Distribution Policy. 

5. Recent studies have consistently shown that ESOP companies, like CPI, enjoy benefits such as greater job security, higher wages, and a strong culture of customer satisfaction.  

6. Only 30% to 40% of all ESOPs are 100% employee-owned—CPI is proud to be in that group. 

7. CPI became an ESOP in 1991. Originally a profitable and respected business unit within a Fortune 500 parent company, CPI’s specialized product line no longer aligned with the parent corporation’s core strategy. Targeted for divestiture, employees were given an opportunity to purchase the business unit, eventually becoming a 100% employee-owned company. 

8. Over the years, CPI has received numerous ESOP awards, a testament to the collective efforts of our employee-owners, including:

  • Company of the Year 2006
  • Employee Owner of the Year Victor Rubio
  • Employee Owner of the Year Allyson Williamson
  • Best ESOP Committee
  • Best ESOP Communications Excellence 2023

9. Every October, many ESOP companies, including CPI, celebrate Employee Ownership Month with fun activities and educational events. 

10. ESOPs have had a profound cultural impact, especially in the U.S., where employee ownership symbolizes the American dream—offering ordinary workers the chance to become owners and share in the wealth they help create. 

In Their Own Words: Insights from Our Employee-Owners 

At Chatsworth Products (CPI), ownership and teamwork aren't just ideas—they're personal experiences that shape our everyday lives. Here’s what some of our employee-owners have to say about being part of the CPI family: 

A Work Environment Like No Other 

For Denise Bonicelli, Customer Service Supervisor in New Bern, North Carolina, the decision to join CPI 28 years ago was one she’d never regret. "I knew from day one that working at CPI would be totally different from any other place I had worked," Denise reflects. "The atmosphere is warm and inviting. I've made many close friends, and I'm happy to say CPI is truly my second family. The words 'teamwork, caring, and commitment' ring true every day." 

A Transparent and Empowering Culture 

Ian Cathcart, a Technical Support Manager based in Europe, has been with CPI for 16 years. "With this being the first ESOP company I've worked for, I've truly enjoyed the benefits of this unique structure," Ian shares. "Being able to watch our monthly owners' meetings and have visibility into the financial side of our business is incredibly empowering. The openness within CPI really enhances the spirit within all of us." 

A Commitment to Employee Well-being 

Victor Rubio, a Material Control Specialist and Jr. Buyer Planner in Chatsworth, California, has been part of the CPI family for 17 years. "This is the first organization I've worked for that truly cares about all of its dedicated, hard-working employees," Victor says. "I've learned a lot and continue to learn more every day. There's no stopping our success!" 

These firsthand experiences highlight the unique culture at CPI, where ownership goes hand in hand with a deep commitment to collaboration and growth. It’s this environment that drives both individual and collective success at CPI. 

Joining the CPI Family: A Commitment to Excellence 

CPI operates three manufacturing plants in the United States—located in Chatsworth, California; New Bern, North Carolina; and Georgetown, Texas. We also have office locations in Canada, Latin America, EMEA, and APAC regions. 

If you’re considering a career with an ESOP company, CPI offers an environment where your contributions are valued, your voice is heard, and your future is secure. Join us and be part of something extraordinary. 

  • Get to know us better by watching our short overview video below. 

  • Head over to our careers page to explore current opportunities and find out how you can join the CPI family. 

 

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