ELGIN, Ill.-Lending Solutions, Inc. (LSI), has established an employee stock ownership plan (ESOP) that effectively transfers 30% ownership in the firm to its employees through a defined contribution benefit plan.

LSI said the ESOP functions similar to an employee 401k or profit-sharing program, in which funds will be deposited annually based on the profitability of the company.

"Transitioning to an ESOP model gives us the opportunity to reward many of our long-term employees for their commitment to hard work over the years, as well as attract new employees," said LSI Chairman Mark Johnson in a statement.

LSI worked with Innovative Shareholder Strategies to develop the ESOP, which will be administered by a committee working in conjunction with a third-party trustee and a third-party administrator.

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