ARE THERE DIFFERENT ways to achieve employee ownership (EO)?
The various ways a company might create an employee ownership plan can be broken down as follows. Ultimately the right plan and specific structure for each company will be different, based on the goals the plan is meant to achieve.
Equity share ownership plans – employees purchase (or acquire) and own shares
Stock option plans – employees have the right to purchase shares in the future
Phantom plans (such as Restricted Stock Units - RSUs, Share Appreciation Rights - SARs, and Deferred Stock Units - DSUs) - many of the benefits of stock ownership without actually giving any company stock
Employee Ownership Trusts (EOTs) - provide business owners with an additional option to consider when succession planning for their businesses and facilitate employees becoming owners of the business