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How An Employee Stock Ownership Plan (ESOP) Works (Demo)

The National Center or Employee Ownership (NCEO) published an article on their Web site on the topic of “How An Employee Stock Ownership Plan (ESOP) Works.”

“Employee ownership can be accomplished in a variety of ways. Employees can buy stock directly, be given it as a bonus, can receive stock options, or obtain stock through a profit sharing plan. Some employees become owners through worker cooperatives where everyone has an equal vote. But by far the most common form of employee ownership in the U.S. is the ESOP, or employee stock ownership plan. Almost unknown until 1974, about 11,000 companies now have these plans, covering over 13 million employees.”

This is an excellent introduction to the workings of an ESOP, which was the first tool designed by binary economist Louis O. Kelso and used to broaden ownership of productive capital among the employees of a corporation.

http://www.nceo.org/main/article.php/id/8/

Comments (1)

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