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Time to Sell Your Business? An ESOP May Be the Answer

Strategy Driven

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. How does an ESOP work? Learning more about how ESOPs work can be explored at Legacy Press Ventures.

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Huawei: A Case Study of When Profit Sharing Works

Harvard Business Review

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.

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More than One Way to Organize a Business

Thin Difference

Democratic member control: Cooperatives are democratic organizations controlled by their members, who actively participate in setting their policies and making decisions. Member economic participation: Members contribute equitably to the capital of their cooperative. is the employee stock ownership plan (ESOP).

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

Harvard Business Review

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. ESOPs typically allocate shares to employees in proportion to their pay. Already, U.S.

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