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Employee Stock Ownership Plans

Project Equity’s ESOP overview explaining the model, common use cases, ownership transfer mechanics, and how ESOPs compare to other employee ownership forms.

Source: Project EquityAdded June 12, 2026
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Why it matters

Project Equity gives founders a practical, transition-focused view of ESOPs alongside other employee ownership options.

Best for

Owners and advisors comparing ESOPs against worker co-ops, EOTs, or other employee ownership paths.

This resource is especially useful for people who are not yet sure which employee ownership model fits their company. It explains ESOPs in the context of business transition and helps readers understand why the model is common, powerful, and more complex than some alternatives.

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Heirloom Library entries are summaries and wayfinding notes. The original source is the best place to read the full resource.

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Next readings

Continue through the reading paths that include this resource.

From ESOP foundations

What Is an ESOP?

Use a field overview from an ESOP-focused organization.

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Guide·Intro

How an Employee Stock Ownership Plan (ESOP) Works

A clear NCEO primer explaining how ESOPs are structured, how the trust works, how shares are allocated, and why ESOPs are commonly used for business succession.

National Center for Employee Ownership
ESOPsShared ownership+1 categoryESOPDemocratic organization+1 model