2. EMPLOYEE STOCK OWNERSHIP
TYPES of Employee Share
Ownership
Permanent employees are
entitled to be part of a share
ownership plan (ESOP)
Employees are entitled to
receive benefits on retirement
Company contributes shares
to the plan, or contributes
cash to the fund to buy the
stock, or lets the fund borrow
money to buy shares and
company repays the loan
Benefits
Draws greater commitment
towards the progress of the
company
Improves employee
satisfaction and motivation
Enables capital growth owing
to long term nature
Enhances savings as opposed
to consumption
hisham's writing pad/ESOP