Employee stock ownership plan is a new form of equity. Employees within an enterprise subscribe for part or all of the company's equity, and entrust the ESOP Association (or a third party, usually a financial institution) as a legal person institution for custody and centralized management and operation. As a legal entity, the Employee Stock Ownership Management Committee (or Council) enters the board of directors and participates in voting and dividends.

Non-lever

Non-leveraged employee stock ownership plan refers to the company's annual contribution to the plan of a certain amount of company shares or cash used to buy shares. This amount is generally 25% of the total salary of the participants. When this kind of plan is combined with the cash purchase pension plan, the contribution ratio can reach 25% of the total salary. The main points of this kind of plan are:

(1) The company provides stocks or cash for buying stocks for the plan every year, and employees do not need to spend any money.

(2) The employee stock ownership trust Foundation holds employee shares and regularly informs employees of the amount and value of the shares.

(3) When employees retire or leave for some reason, they will get stocks or cash according to the requirements of a certain number of years.