Frequently Asked Questions

Employee Ownership FAQs

Common questions about employee stock ownership plans (ESOPs), employee ownership trusts (EOTs), and other forms of employee ownership, from the basics to technical topics.

This FAQ is written primarily for business owners, managers, and advisors involved in setting up or running an employee ownership plan. If you're an employee at an ESOP company looking to understand your own benefits and rights, see our articles on Working at an ESOP Company and The Rights of ESOP Participants.

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How common is it for closely held companies to be broadly employee owned by their employees through employee share purchase plans?

Thousands of public companies offer employee stock purchase plans that often provide a discount on the purchase of shares. Broadly available stock purchase plans in closely held companies are far less common. They are most often found in professional firms, such as engineering and architecture companies, but occasionally in other companies.

For more information, see Direct Employee Ownership.

Link to this FAQ Topic: Direct Employee Ownership