Summary
The Employee Stock Ownership Plan (ESOP) is a uniquely American structure that allows employees to own a stake in the company where they work. With more than 10 million participants in more than six thousand U.S. corporations, ESOPs are the most prevalent form of broad-based employee ownership in the United States.
We know that ESOPs benefit U.S. employees. Research shows they can deliver considerable financial wealth to workers over time and are associated with increased benefits, training, and employee participation. We also know that ESOPs can strengthen the American companies that adopt them, especially when firms combine employee ownership with a supportive “ownership culture,” or an environment in which workers have a voice and come to think of themselves as true partners in the business.
In today’s globalizing economy, many U.S. ESOP companies are multinational corporations with global workforces and operations. This report takes an unprecedented look at the benefits and challenges of employee ownership for such multinational ESOP firms. Drawing on interviews with executives at seven successful S ESOPs and other leading experts, it presents careful analysis and detailed case studies to explore what a culture of ownership can look like for ESOP companies with international workforces.