Employee Stock Ownership Plan Market Report 2025

The employee stock ownership plan market size has grown strongly in recent years. It will grow from $1.93 billion in 2024 to $2.12 billion in 2025 at a compound annual growth rate (CAGR) of 9.8%. The growth observed during the historic period can be attributed to an increased focus on employee retention and motivation, wider adoption of equity-based compensation models, growing succession planning needs among private companies, enhanced government support for employee ownership, and rising corporate interest in fostering a shared ownership culture.

The employee stock ownership plan market size is expected to see strong growth in the next few years. It will grow to $3.04 billion in 2029 at a compound annual growth rate (CAGR) of 9.4%. In the forecast period, growth is expected to be driven by rising demand for inclusive wealth distribution strategies, greater emphasis on employee financial literacy, increased use of employee stock ownership plans in startup exit planning, growing interest from institutional investors, and expansion of cross-border employee stock ownership plan implementations. Key trends include advancements in digital management platforms, development of personalized equity compensation models, innovations in blockchain-based stock ownership tracking, progress in regulatory frameworks, and the growth of global employee stock ownership initiatives.

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 players 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, and Praxis Consulting Group Inc.

North America was the largest region in the employee stock ownership plan market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in employee stock ownership plan report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the employee stock ownership plan market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s recommendations and conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the financial sector, particularly in investment strategies and risk management. Heightened tariffs have fueled market volatility, prompting cautious behavior among institutional investors and increasing demand for hedging instruments. Banks and asset managers are facing higher costs associated with cross-border transactions, as tariffs disrupt global supply chains and dampen corporate earnings, key drivers of equity market performance. Insurance companies, meanwhile, are grappling with increased claims risks tied to supply chain disruptions and trade-related business losses. Additionally, reduced consumer spending and weakened export demand are constraining credit growth and investment appetite. The sector must now prioritize diversification, digital transformation, and robust scenario planning to navigate the heightened economic uncertainty and protect profitability.

An employee stock ownership plan is a retirement benefit arrangement where a company establishes a trust fund to allocate shares of its own stock to employees, gradually granting them an ownership interest in the business. This plan aligns employees’ interests with the company’s success, fostering increased motivation and loyalty, while also offering business owners a flexible solution for succession planning or ownership transfer.

The main types of employee stock ownership plans include stock bonus plans, employee stock ownership trusts, leveraged employee stock ownership plans, and non-leveraged employee stock ownership plans. A stock bonus plan involves a company awarding shares directly to employees as part of their compensation, usually without requiring any cash contribution from employees. These plans may have various vesting schedules, such as immediate, graded, or cliff vesting, and different ownership structures including partial or full ownership. Stock bonus plans are adopted by companies of all sizes - from small to large enterprises - and span multiple industries such as manufacturing, retail, healthcare, finance and insurance, technology, construction, professional services, energy, and real estate.

The employee stock ownership plan market research report is one of a series of new reports that provides employee stock ownership plan market statistics, including employee stock ownership plan industry global market size, regional shares, competitors with an employee stock ownership plan market share, detailed employee stock ownership plan market segments, market trends and opportunities, and any further data you may need to thrive in the employee stock ownership plan industry. This employee stock ownership plan market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

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.

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