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

Strategy Driven

Let’s assume you started a digital marketing agency, a realistic example, given this industry is hot. Selling one’s company to an ESOP, an employee stock ownership plan, does just that. Selling to an ESOP preserves company culture and increases productivity, which generally ensures strong future performance.

ESOP 51
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Profit Sharing Boosts Employee Productivity and Satisfaction

Harvard Business Review

Since the mid-2000s, broad-based shared capitalist programs — in other words, programs where firms offer profit sharing and employee ownership to nonmanagers as well as managers — have spread to cover more employees than traditional forms of individual performance-based pay in Europe and the United States.

ESOP 8
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Treat Employees Like Business Owners

Harvard Business Review

Many large corporations manage to find big bundles of shares (and huge amounts of cash) for executive compensation, even though there’s little relationship between senior-management pay and financial results. Just look at the supermarket industry to see such ownership in action. It doesn’t have to be. Insight Center.

ESOP 8
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Why the U.S. Needs More Worker-Owned Companies

Harvard Business Review

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