Sustainability of employee ownership : the role of capital structure in ESOP plan terminations

Gonza, Tej (author)

Purpose – The paper studies the relationship between central features of the capital structure and terminations of ESOP plans in the US. Design/methodology/approach – The research methodology is primarily based on reviewing the existing literature and includes elements of original comparative analysis. Findings – We find that externally imposed repurchase obligation, the stochastic element to repurchase obligation and the discontinuous vesting of ICA shares undermines the sustainability of employee ownership in the Employee Stock Ownership Plan model. Research limitations/implications – Strengthening employee-owned firm the structural architecture of employee-owned firms (EOF) can help to improve sustainability of the socially preferable alternative in the market economy. Practical implications – In light of the increasing global interest in employee ownership, our research underscores the need for institutional learning to adapt EOFs to contemporary economic environments. Social implications – Strengthening employee-owned firm the structural architecture of employee-owned firms (EOF) can help to build the case for the socially preferrable business ownership model for the market economy. Originality/value – This paper contributes to the employee ownership literature by providing understanding of the role of capital structure in the US ESOP model and terminations of ESOP plans and suggesting some novel ideas in addressing the challenges.

• Language: English
• Keywords: ESOP, Employee Stock Ownership Plan, employee ownership, repurchase obligation, ESOP terminations, roll-over
• Work type: Article
• Typology: 1.01 - Original Scientific Article
• Organization: FDV - Faculty of Social Sciences
• Publication status: Published
• Publication version: Version of Record
• Publication date: 16.09.2025
• Year: 2025
• Number of pages: Str. 16-31
• Numbering: Vol. 8, no. 1/2
• PID: 20.500.12556/RUL-176631
• UDC: 334.72
• ISSN on article: 2514-7641
• DOI: 10.1108/JPEO-07-2024-0014
• COBISS.SI-ID: 229865219
• Publication date in RUL: 05.12.2025

Record is a part of a journal

• Title: Journal of participation and employee ownership
• Publisher: Emerald
• ISSN: 2514-7641
• COBISS.SI-ID: 18288387

Licences

• License: CC BY 4.0, Creative Commons Attribution 4.0 International
• Link: http://creativecommons.org/licenses/by/4.0/
• Description: This is the standard Creative Commons license that gives others maximum freedom to do what they want with the work as long as they credit the author.

Secondary language

• Language: Slovenian
• Keywords: načrt lastništva delnic zaposlenih, lastništvo zaposlenih, obveznost ponovnega nakupa, lastnina, zaposleni, delavsko soupravljanje