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Profit Sharing Boosts Employee Productivity and Satisfaction

Harvard Business Review

But that began to change in the 1980s, most notably with the success of Japanese manufacturing multinationals such as Nissan, which brought in new systems characterized by team production. For instance, individuals who become part of all-employee share ownership plans (ESOPs) are given tax breaks to own their company’s stock.

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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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Treat Employees Like Business Owners

Harvard Business Review

And companies — except for the very smallest — can implement an employee stock ownership plan (ESOP), often funded through borrowing. ” These tools also address two fundamental challenges of today’s free-enterprise system. A portion of those assets can be redirected to regular stock grants for employees.

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More than One Way to Organize a Business

Thin Difference

The various roles in an organization are structured in a system of self-organizing (but not self-directed) circles. is the employee stock ownership plan (ESOP). An ESOP is a type of retirement plan that invests primarily in company stock and holds its assets in a trust, in accounts earmarked for employees. Sociocracy.

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

Harvard Business Review

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.

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