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Limited liability companies (LLCs) are a relatively recent form of business organization, but one that has become increasingly popular because of their simplicity and flexibility. Many LLCs want employees to have an ownership stake in the company, and they have a wide array of options.

This page presents counts and characteristics of ESOPs and other employee stock ownership plans in the U.S., using data made available by the U.S. Department of Labor, Survey of Consumer Finances, and other sources. Page Contents

 

Contents Introduction Employee Stock Ownership Plans (ESOPs) Stock Options Employee Stock Purchase Plans Restricted Stock, Phantom Stock, and Stock Appreciation Rights 401(k) Plans Employee Ownership and Employee Motivation

Research Shows That ESOPs Provide Retirement Benefits that Are Both Much Larger and Much More Equitably Distributed than Most Other Retirement Plans

Traditionally, stock option plans have been used as a way for companies to reward top management and "key" employees and link their interests with those of the company and other shareholders.

Limited liability companies (LLCs) are a relatively recent form of business organization, but one that has become increasingly popular. LLCs are similar in many ways to S corporations, but ownership is evidenced by membership interests rather than stock.

S Corporations ESOPs Have Exceptional Tax Benefits, But Plans Must Be Designed to Benefit Employees Broadly