If you ask us, “What is an ESOP or EOT?” we would say that Employee Share Ownership Plans are a tool for meaningful employee engagement and small- and medium-business growth. Growth that can dramatically impact the livelihood of Canadians. An EOT, that has recently been introduced in Canada, is a form of employee ownership.
If you’re looking for a definition, we offer this: ESOPs are stock equity plans that allow employees to acquire ownership in a company, heightening employee buy-in and investment, while fostering accountability and an ownership mentality. They may include stock options, stock purchase, phantom-stock ownership, Employee Ownership Trust (EOT) or a combination of alternatives. Employee ownership can range from 1% to 100% of the company. As employees become owners, they share in the risks and rewards of the company.
At ESOP Builders we helps companies develop customized plans to suit business and business-owner needs, following a detailed consultation with our team.
Why implement an ESOP?
- attract and retain talented staff
- improve productivity and profitability
- engage employees in the big picture of company
- flexible succession or exit plan
- method for employees to build long-term wealth
- source of capital for company
If you’re still wondering “what is an ESOP or EOT?” and want to learn more or assess whether ESOPs and EOTs are suitable for your company, please contact our team directly or complete our free Feasibility Survey.