Employee Stock Ownership Plan Market Report 2026

The employee stock ownership plan market size has grown strongly in recent years. It will grow from $2.12 billion in 2025 to $2.32 billion in 2026 at a compound annual growth rate (CAGR) of 9.4%. The growth in the historic period can be attributed to greater acceptance of employee ownership frameworks, availability of favorable tax structures, increased focus on long-term workforce stability, adoption by privately held companies, growing advisory ecosystem for esops.

The employee stock ownership plan market size is expected to see strong growth in the next few years. It will grow to $3.32 billion in 2030 at a compound annual growth rate (CAGR) of 9.4%. The growth in the forecast period can be attributed to increasing use of esops in mid-sized enterprises, rising demand for ownership transition solutions, expansion of digital compliance and reporting tools, growing focus on employee wealth creation, increasing interest in inclusive corporate governance. Major trends in the forecast period include increasing adoption of esops for succession planning, rising use of digital esop administration platforms, growing interest in employee ownership models, expansion of leveraged esop structures, enhanced focus on employee retention strategies.

The growing number of startups and small and medium-sized enterprises (SMEs) is expected to drive the expansion of the employee stock ownership plan (ESOP) market moving forward. Startups and SMEs - newly established or small- to medium-sized businesses - play a key role in fostering innovation, economic growth, and job creation. Their rapid increase is largely due to advancements in digital technologies that have lowered entry barriers, enabling entrepreneurs to access online tools, platforms, and markets more easily, which facilitates faster growth at reduced costs. ESOPs help these startups and SMEs attract and retain talent, increase employee motivation, and align employees’ interests with the company’s success through shared ownership. For example, in November 2024, the House of Commons of the United Kingdom reported that the UK had 5.5 million SMEs in 2024, accounting for over 99% of all businesses. These SMEs contributed to 60% of the nation’s employment and generated 48% of total business turnover. Consequently, the rise in startups and SMEs is fueling growth in the ESOP market.

Leading companies in the employee stock ownership plan (ESOP) market are focusing on innovative share-based stock ownership plans to boost employee participation in corporate equity and reinforce long-term organizational commitment. Share-based stock ownership plans allow employees to acquire company shares - often at a discount or as part of their compensation - to foster ownership, loyalty, and alignment with corporate performance. For instance, in April 2024, Eni SpA, an Italy-based oil company, introduced a new ESOP offering shareholding opportunities to over 65,000 employees across 62 countries. The plan enables employees to invest part of their salary in company shares at a discounted price, with the potential to earn additional free shares based on performance and holding duration. This initiative aims to deepen employee commitment, align workforce objectives with corporate goals, and promote inclusion in the company’s long-term strategy.

In May 2024, Principal Financial Group, a US-based financial services firm specializing in investment management and insurance, acquired Ascensus’s ESOP business for an undisclosed sum. This acquisition is intended to expand Principal Financial Group’s scale, enhance expertise, and strengthen systems and capabilities in retirement solutions. The move will allow the company to deliver greater value, improved services, and stronger products to ESOP clients, reinforcing its position as a leading ESOP service provider in the United States. Ascensus LLC is a US-based financial services company offering ESOP-related solutions.

Major companies operating in the employee stock ownership plan market are Principal Financial Group Inc., BDO USA LLP, WinCo Foods LLC, Brookshire Brothers Ltd., Hatch Ltd., Recology Inc., Kroll LLC, SC&H Capital LLC, Blue Hippo LLC, Veritas Capital Fund Management LLC, Argent Financial Group LLC, Chartwell Financial Advisory LLC, Penmac Holdings LLC, GBQ Capital Advisors LLC, FMI Capital Advisors LLC, GreatBanc Trust Company, Trout CPA LLC, Wright Ford Young And Co. P.C., The Menke Group Ltd., Capstone Partners LLC, Praxis Consulting Group Inc.

North America was the largest region in the employee stock ownership plan market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the employee stock ownership plan market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the employee stock ownership plan market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The employee stock ownership plan market includes revenues earned by entities by providing services, such as plan design and structuring, stock valuation, legal and regulatory compliance, trust administration, plan recordkeeping, and equity management. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

This product will be delivered within 1-3 business days.