Employee Stock Ownership Plans: Popularity, Productivity, and Prospects

Employee ownership has a rich tradition throughout the world in the form of co‐operative enterprises, however, the concept has received a new boost in the form of employee stock ownership plans (ESOPs). In order to understand why the stock model of ownership has received so much attention worldwide, one must examine the known and potential benefits of this model. As the United States provides the most widespread example of employee stock ownership, we shall begin our discussion there. The next section addresses in depth the corporate performance benefits of employee ownership and outlines additional benefits of interest throughout the world. The final section offers a brief look at employee ownership worldwide.