Equity Participation
Employee Ownership Plans
Employee ownership plans, as a variant of material employee participation, refer to those optional compensation schemes in which employees are linked to their respective employer through equity shares with financial support from the employer. It is available in various forms regarding the use of funds, including debt and equity (like equity) participation; see Figure K-1. A connection to profit-sharing often exists in that the respective equity participations—as part of the funding process—are “financed” by previous individual profit shares (possibly with an additional contribution from the employees). Different forms of participation structure apply. A relationship to intangible participation exists in the context of the so-called “company partnership.”
Forms of Equity Capital Mixed Capital Forms of Debt Capital
Employee Shares
GmbH Shares
Cooperative Shares
Silent Partnership
Profit Participation Certificates
Indirect Participation via Employee Company
Employee Loans
Employee Bonds
