v3.25.2
Retirement Benefit Plan
6 Months Ended
Jun. 30, 2025
Retirement Benefits [Abstract]  
Retirement Benefit Plan
13.
Retirement Benefit Plan

The Company’s principal retirement benefit plan is the Parsons Employee Stock Ownership Plan (“ESOP”), a stock bonus plan, established in 1975 to cover eligible employees of the Company and certain affiliated companies. Contributions of treasury stock to the ESOP are made annually in amounts determined by the Company’s board of directors and are held in trust for the sole benefit of the participants. Shares allocated to a participant’s account are fully vested after three years of credited service, or in the event(s) of reaching age 65, death or disability while an active employee of the Company. As of June 30, 2025 and December 31, 2024, total shares of the Company’s common stock outstanding were 106,795,525 and 106,775,350, respectively, of which 52,106,092 and 54,117,903, respectively, were held by the ESOP.

A participant’s interest in their ESOP account is redeemable upon certain events, including retirement, death, termination due to permanent disability, a severe financial hardship following termination of employment, certain conflicts of interest following termination of employment, or the exercise of diversification rights. Distributions from the ESOP of participants’ interests are made in the Company’s common stock based on quoted prices of a share of the Company’s common stock on the NYSE. A participant will be able to sell such shares of common stock in the market, subject to any requirements of the federal securities laws.

Total ESOP contribution expense was $17.6 million and $15.1 million for the three months ended June 30, 2025 and June 30, 2024, respectively and $35.4 million and $30.1 million for the six months ended June 30, 2025 and June 30, 2024, respectively. The expense is recorded in “Direct costs of contracts” and “Selling, general and administrative expense” in the consolidated statements of income. The fiscal 2025 ESOP contribution has not yet been made. The amount is currently included in accrued liabilities.