Employee Stock Ownership Plans (“ESOPs”) promote employee ownership, facilitate business succession plans, and provide a retirement tool for owners of closely-held businesses. In 2014, approximately 22.9 million Americans owned shares of their company under a 401(k) plan, an ESOP, stock grants, or other similar plans.

As a direct result of employee ownership, ESOP companies are said to grow between 2.3% to 2.4% quicker than nonemployee-owned companies. Moreover, ESOP participants generate 5% to 12% more in wages than other workers not involved in an ESOP and accumulate more than three times the amount of retirement assets

Read more: Wholly-Owned Employee Stock Ownership Plan S Corporations | The National Law Review