ESOP increases the employees satisfaction and work motivation as the employee
  feels that he/she has the opportunity to influence the business. In addition, it often
  results in higher performance.
ESOP is an important measure to perfect corporate governing structure and
  improve business efficiency.
ESOP is an effective countermeasure to fend off hostile takeover.
ESOP is beneficial to harmonize beneficial relationship between the labor and  
  capital. Taking America for the example, the ESOP in America meets the needs of    
  all parties. On the one hand, employees become proprietary class and obtain the
  benefits of sharing capital income by operating the ESOP. On the other hand,  
  under the condition of tax preferences mechanism of America, business owner can
  obtain more benefits by transferring the shares to employees.
ESOP adapts the requirement of the reformation of system of ownership. No
  matter the developed capitalist countries or the developing planned economy
  countries, ESOP is appropriate for them. The establishment of ESOP in America
  decentralized the equity ownership, and make labour income and capital revenue
  come true for employees.
ESOP is a method of retaining talents. Firstly, it is regulated that the obtaining  
  and liquidating of the employee's stocks are limited by seniority of employees in  
  the corporation. Usually an   employee can sell or make over all his stock rights  
  but after several years. Employees left the corporation before, will suffer a loss.
  Secondly, emplyees don't have the reversion of the stocks they are holding. This
  kind of regulation, that restricks the liquidating, cession, trading and inheriting
  of the employee's stocks which is used to keep the talents , is called "the golden
  handcuffs" by European corporations.
(7) Comparing with the other forms of employee involvement, it is obvious that
  ESOP is the optimal choice. There are...