4
THE DAVEY BULLETIN
|
January/February 2020
ASK THE CEO:
Q. HOW IS EMPLOYEE COMPENSATION CHANGING IN 2020?
MISSION
Starting in 2020, Davey is making several changes to the Davey
401KSOP under the "Safe Harbor" provision, including:
• The company will contribute 100 percent up to 3 percent of your
certified compensation, and will match 50 percent up to the next
2 percent of your compensation.
• Employees are now immediately vested in both their contribution
and the company match.
• The company will make its matching contributions to each
employee's account on a quarterly basis.
• Starting in 2020, upon reaching 1 year of continuous service,
employees must take action upon receiving their enrollment
kit from Wells Fargo to become a participant in the 401KSOP.
• Notification regarding "Safe Harbor" provisions effective Jan. 1,
2020, were sent to participants from Wells Fargo in November.
of directors. Also, the matching
contributions will now be made on
a quarterly basis as opposed to the
previous annual schedule. So, you
get the match that much sooner.
And, you're immediately 100
percent vested.
As a management team, we see a
lot of value in maintaining a strong
balance between our collective
stakeholders, those being employees,
clients and shareholders. And that's
reflected in the company's strategic
plan. Anything we do should benefit
our employees, improve the client
experience or increase our
shareholders' value.
We're looking at it more holistically.
Improving employee compensation
A. We are increasing the company
match contribution to the Davey
401KSOP, effective Jan. 1, 2020.
Now, for every dollar you put in the
plan, the company will contribute
100 percent up to 3 percent of
your certified compensation, and
the company will match 50 percent
up to the next 2 percent of
your compensation.
Under the previous formula, the
company contributed 100 percent
up to 1 percent and matched 50
percent up to the next 3 percent.
The increase is a real benefit to you,
as the match can be contributed
by the company in Davey stock or
cash, at the discretion of our board
Pat Covey
Davey President and CEO
is a slightly different way of looking
at shareholder value.
Engaged employees who are
happy with their compensation
package will consistently provide
a higher-quality client experience.
Over the long term, satisfied and
loyal clients help sustain a healthy
financial position for the company,
thus benefitting our shareholders.
We're continually working to provide
a truly meaningful benefit and
compensation package here at Davey
beyond just your base compensation.
We're always considering the
longer-term benefits we offer, and
that includes our commitment to
maintaining accessible paths to
employee-ownership.
To be eligible for 401KSOP
participation, employees must be
non-union with 1 year of service
and be 21 years of age.
If you have questions about the
Davey 401KSOP, please reach out
to Marietta Neal in human resources
at 800-447-1667 ext. 8394 or via
email at marietta.neal@davey.com.
DAVEY 401KSOP CHANGES
