587. Should Companies Be Owned by Their Workers?
Freakonomics Radio
ESOP and Benefits of ESOP Model
ESOP, or Employee Stock Ownership Program, allows companies to borrow money to purchase the shares of a retiring owner, which are then allocated to employees. This model has shown significant benefits, including higher productivity, sales, and employment growth compared to non-ESOP companies. ESOP companies have lower layoff rates, better retention rates, and employees have three times more retirement assets. Companies like Bob's Red Mill, Public supermarkets, Cliff Bar, and Huawei have seen success with the ESOP model, proving that treating employees well leads to enhanced company performance.
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