KCI’s retirement benefits offer employees up to 9 percent additional compensation through 401(k) matching and discretionary ESOP contributions. The firm cares about our employees and their lives outside of the firm, not just today, but for their futures as well. KCI’s retirement program including 401(k) and ESOP is first in its class in the engineering, consulting and construction industry.
KCI is 100% employee-owned. No owner at KCI owns more than 3% of the stock, and since 1988 the stock value has appreciated more than 3000%, greatly surpassing the performance of the S&P and NASDAQ indices over the same period.
ESOP companies succeed not only because they have an employee stock ownership plan, but because they create a work environment where empowered employees can earn tangible rewards through growth in ESOP share values, based on individual and corporate performance.
At KCI, employees understand they are actual owners, who share a responsibility to help grow the company. Employees are empowered to act like owners because they know their input is valued and will help improve the company’s future. Our team knows that their actions and positive attitudes create the atmosphere and opportunities necessary for KCI to be an industry leader. Being an ESOP offers a unique advantage to KCI, since our day-to-day performance directly impacts our individual stock investments. For example, keeping a project on schedule and within budget generates profits, which helps improve the value of each share of stock we own. KCI’s profits stay within the company, with no federal and minimal state tax obligations.
Being an employee-owner has its benefits. It doesn’t take long to build an interest in KCI and your retirement nest egg is contributed 100% by the company. The real-life example below illustrates how quickly an ESOP retirement account can grow within her first years of employment with KCI.
In addition to the ESOP, KCI offers a very competitive retirement plan through the ACEC Retirement Trust and Empower Retirement Services known as the KCI Technologies 401(k) Plan. Upon hire, eligible employees (minimum age 20) are automatically enrolled in the KCI 401(k) Plan at a 4% pre-tax deferral rate unless they make another election. For employees who are automatically enrolled, the contribution will automatically escalate each year until reaching 8%.
KCI matches employee pre-tax and after-tax Roth contributions – 50% of the first 6% contributed to the plan. KCI’s employer match is immediately vested and the plan maintains a variety of investments with competitive fees.