Employee ownership is gaining momentum worldwide, with businesses increasingly recognizing the benefits of giving employees a stake in the companies they work for. Employee Stock Ownership Plans (ESOPs) and similar models enhance productivity, job satisfaction, and business resilience. While the United States has long been a leader in ESOPs, the concept is expanding rapidly across
Employee stock ownership and Employee Stock Ownership Plans (ESOPs) have become a key component of corporate culture and economic participation in the United States. The concept traces its origins back to the early 20th century but gained significant momentum in the mid-1900s.
The first modern ESOP is credited to Louis O. Kelso, an investment banker and
George Clason, in his classic book titled “The Richest Man in Babylon,” wrote this line: “A part of all I earned was mine to keep.” In the 1950s, a lawyer named Louis Kelso coined the term “Employee Stock Ownership Plan” (ESOP). The intent of ESOPs is to significantly increase employee incentives and productivity, while giving
