Strategy Driven

APRIL 26, 2019

Let’s assume you started a digital marketing agency, a realistic example, given this industry is hot. Over seven years the company develops a solid client base, grows to 16 employees serving 40 clients, with revenues of $2 million annually. Selling one’s company to an ESOP, an employee stock ownership plan, does just that.

ESOP 51

ESOP Learning-by-Doing Banking Morale 51

Harvard Business Review

SEPTEMBER 24, 2015

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.

Case Study 8

Case Study ESOP Incentives Long-term 8

Harvard Business Review

DECEMBER 8, 2015

And companies — except for the very smallest — can implement an employee stock ownership plan (ESOP), often funded through borrowing. Just look at the supermarket industry to see such ownership in action. COGS dropped from roughly 30% of revenue to 26.5% over a four-week period, and continued to hold in the mid-20s.

ESOP 8

ESOP Open-book Norton Loyalty 8

Harvard Business Review

AUGUST 8, 2018

Gore and Associates, are leaders in their industries. The largest industrial federation of worker cooperatives in the world, Mondragon Corporation, is one of Spain’s top 10 multinationals, with about $13 billion in revenue from 105 cooperatives, and 75,000 employees stretching across Europe, Asia, South America, and the United States.

ESOP 13

ESOP Company Cooper IAM 13