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Profit Sharing Boosts Employee Productivity and Satisfaction

Harvard Business Review

For instance, individuals who become part of all-employee share ownership plans (ESOPs) are given tax breaks to own their company’s stock. The introduction of ESOPs changed the equation by giving employees a financial stake in their firm that came with voting rights and opportunities to participate in company governance.

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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). The structure of the ESOP is based on two important premises. Overtime projects that do not reveal direct positive consequences for customers are not rewarded. Huawei’s ESOP can satisfy both human needs.

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

Harvard Business Review

The general understanding of how emerging hybrid ownership models can benefit investors, business owners, workers, and community stakeholders needs to be broadened so that retiring owners and investors like private equity funds, with charters to invest in enterprises that have a positive social impact, can consider them more often.

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