The ESOP system contributes to improved job security of workers. It also supports the sound development of the capital market and enables companies to enjoy greater productivity and competitiveness by instilling a sense of ownership and corporate loyalty in employees and attracting more talented workers.

• Increases job security of employees by giving them a capital income in addition to their wages. The system enables the sharing of a company’s growth with its employees in the form of capital incomes from the increased price of ESOP shares and dividends paid out to ESOA members
• By receiving wages in the form of stocks, workers can receive more pay compared to what they would get if the employer company only paid wages in cash
• By letting them participate in the company’s management, workers may act as internal watchdogs and promote job security by voting for wage adjustment or other alternatives rather than laying off workers during economically difficult times
• Tax benefits are provided such as tax postponements on donations from employees or donations from the company allotted to employees and partial tax exemptions upon withdrawals
• Contributes to increased job security by promoting workers to acquire the company in the event of a spin-off or the waiver of management rights by a successor

• Improves a company’s productivity and competitiveness by attracting talented workers and instilling a sense of ownership and corporate loyalty in employees
• Cooperative labor-management relations: increased elasticity in wage negotiations (may pay in treasury stocks) and prevention of conflicts between labor and management
• By paying treasury stocks to workers instead of cash for their bonuses, there is more available cash to invest and an expanded scope of investment tools to choose from
• Protects companies from hostile M&As and offers them a new way of procuring funds
• Various tax benefits: the stock/cash donations provided to ESOAs are considered expenses

• For shareholders of non-listed or non-registered companies, ESOPs provide an internal market where they can liquidate their stocks
• May enjoy trading profits from increased stock prices led by the company’s strengthened competitiveness and improved productivity

• Contributes to the sound development of capitalism by realizing social justice through the fair distribution of wealth and promotion of ownership dispersal
• Helps create a foundation for workfare through the increased productivity of companies
• Promotes the creation of a cooperative labor-management relations which are synergetic and harmonious
• Smooth restructuring process and greater job security