ASHEVILLE, NC (April 18, 2011) — Festiva Hospitality Group is happy to announce that beginning in 2010, it initiated an Employee Stock Ownership Plan (ESOP). This plan, which has been designed and installed by Menke & Associates, will benefit Festiva employees and the company as a whole.
Since 1974 Menke & Associates has structured over 2,500 ESOPs, reaching all 50 states. They provide all the services needed to design and install an ESOP, including Structuring, Legal & Tax Compliance, Valuation, Documentation, Employee Communication, and Administration.
There are several purposes for Festiva’s new ESOP. One is to ensure that the company remains in good hands in the coming years. As our founders, Don Clayton and Butch Patrick, get closer to retirement age, they feel strongly that the longtime employees who have helped bring Festiva to where it is today have an opportunity to share in the company’s future success. The ESOP also provides a long-term retirement plan for employees, by using money coming from the company’s profits rather than individual employees’ paychecks.
This is a very exciting step for Festiva’s current shareholders and for all employees as we grow and mature. The ESOP enhances Festiva’s ability to recruit and retain the best and brightest employees. It also benefits Festiva’s members and resort guests as it encourages even further employee involvement in areas such as productivity improvement and enhancing customer service.
An ESOP operates through a trust to which a company sells part or all of its stock. The employees are beneficiaries of the trust. When an employee leaves the company, his interest in the trust is dissolved, usually by the trust buying his stock. The employee then gets the cash while the trust retains control of the stock.
Based in Asheville, N.C., Festiva Hospitality Group operates a dynamic collection of hotels and resorts in some of the most sought-after destinations throughout the Midwest, Southeast, Northeast and Caribbean. Festiva Sailing Vacations, a Festiva company that operates the Festiva Cruise Club, charters all-inclusive luxury catamaran yachts in the Caribbean. Festiva currently has more than 60,000 members among 25 vacation ownership resorts and five Festiva Cruise Club destinations. The number of members in the Festiva Adventure Club exceeds 20,000. Festiva employs nearly 1000 people in eight states and the Caribbean.
Sara Bader Little
Director of Corporate Communications
Festiva Hospitality Group
828-254-3378, Ext. 4398
SOURCE: Festiva Hospitality Group