What are Economic Ownership Rights (EORs)?

This means that a company sells only the economic rights of a share to an employee. The legal ownership stays with the company (or original owner of the share), but any economic gains or losses are for the “new owner”. It means that the original owner of the share waives their economic ownership rights to their shares. You transfer this economic ownership right to someone else who is now entitled to the profits that come in on the share and the increase or decrease of the share’s value. Legally, the original owner still owns the share, but someone else is entitled to any dividend paid out or any losses or profits when the share is sold. The rights to vote or reflect remain with the legal owner of the share.