Employee stock ownership, comparative analysis of ESOPs and designation of legal omissions and risks of the Armenian legislation

Abstract

This paper thesis aims to provide data on historical background and contemporary development of the phenomenon “Employee stock ownership”. Taking into consideration the overall regulation and its recorded success so far, in this thesis I put more emphasize on the Employee stock option plans which is considered to be the most successful and widespread method in the world in terms of implementing employees financial participation. The main research question is the following:” Employee stock ownership, comparative analysis of ESOPs and designation of legal omissions and risks of the Armenian Legislation”. This research also aims to provide information on the expedience and necessity of implementation and operation of Employee stock ownership schemes meticulously estimating all the advantages and drawbacks of the latter and focusing on the associated problems from the viewpoint of legal regulation and from the viewpoint of corporate governance. In this regard, Armenian legal regulation is pushed forward as Armenia represents a developing economy where there is an increasing demand by recruiting companies especially by newly established IT companies to exercise Employee stock ownership schemes. Through my paper I thoroughly examined the regulating provisions envisaged by Labor code of the RA, Tax Code of RA, the law on Securities market of the RA, the law on Joint Stock companies etc.