Why the U.S. Needs More Worker-Owned Companies

Harvard Business

And companion bills developed to enable the U.S. Some businesses with employee stock ownership plans (ESOPs) are converting into structures that more closely resemble worker co-ops. ” The company maintained the tax advantages of an ESOP, but distributed the shares in a way that would give employees with lower salaries greater voting power. ESOPs typically allocate shares to employees in proportion to their pay. Klaus Meinhardt/Getty Images.

ESOP 44

Huawei: A Case Study of When Profit Sharing Works

Harvard Business Review

But how feasible are these plans at large, global organizations?There At Huawei’s inception, Zhengfei designed the Employee Stock Ownership Plan (ESOP). At the time, Zhengfei had no idea what a stock option system was – not being familiar at that time with the types of incentives systems developed in the West. The structure of the ESOP is based on two important premises. Huawei’s ESOP can satisfy both human needs.

ESOP 12