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How to Choose an Employee Stock Plan for Your Company

Many companies we encounter have a pretty good idea of what kind of employee ownership plan they want to use, usually based on specific needs and goals. However, sometimes they might be better served by another kind of stock plan. And yet others say they'd like to have an employee ownership plan, but they're not sure what it might be. This article will start you down the path to choosing and implementing the plan or plans best suited to your company.

Plans for Broad-Based Employee Ownership

Let us begin by quickly reviewing the main possibilities for broad-based employee ownership. A "broad-based" plan is one in which most or all employees can participate. (Note to non-U.S. readers: like everything else on this site, this is U.S.-specific.)