TXI is a 100% employee-owned ESOP company

An Employee Stock Ownership Plan is a US retirement benefit plan that gives all employees a beneficial ownership interest in their company in the form of shares of stock. Employees do not buy in with their own capital; they earn shares as a benefit of being an employee. The value of those shares vests through an employee’s tenure and remains in a tax-deferred account. When an employee exits the company, the value of their vested shares can be rolled over into another retirement vehicle to continue the tax deferral.

With stock options, you have the option to purchase stock at a certain price with your own capital. ESOP shares are not purchased by employees; they are earned as a benefit of your employment. RSUs are granted to certain employees like a bonus, often based on performance or tenure.

Both stock options and RSUs have different tax treatment than ESOP shares (the specifics of stock/RSU taxes depends entirely on an individual situation). ESOP is intended as a retirement plan and therefore the taxes are deferred for as long as the value remains in a retirement vehicle (the ESOP trust account or rolled over to an IRA upon exit).

ESOP is a US retirement benefit plan. However, we offer a parallel benefit to all TXIers in all countries through what is known as a SERP, or Supplemental Executive Retirement Plan. This is a standard way that ESOP companies offer similar benefits to non-US-based employees. The main difference between a SERP and the ESOP is that every country has different tax regulations that are outside of TXI’s control, so there will be different tax implications on these plans for TXIers in those different countries.