Find Your Resource

In the U.S. ESOPs are by far the most important form of broad-based employee ownership. But there are other ways employees can become owners as well.

The recent announcement that the 800 employees of CHI Overhead Doors would receive an average of $175,000 each from the $3 billion sale of the company to Nucor by the private equity firm KKR generated considerable publicity— and debate.

Many businesses take steps to align the interests of employees and the company, often by providing variable compensation linked to the value of the company. Others want to offer recruitment or retention bonuses to develop the workforces they need to grow. Corporations use equity compensation plans such as stock options, performance shares, or restricted stock, and LLCs have similar versions of these equity compensation plans.