Do the employees get a stake in the company proportional to how many there are? Are profits shared amongst them equally?
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I work for an employee owned business, so my information is based on how my company works.
The founder of the company put all the company shares into a trust, this trust stated that the employees were equal owners of those shares and were to be given the dividends that shareholders would get. This means that rather than publicly trading the shares and offering dividends based on the success, the employees get the dividends. This takes the form of a yearly bonus based on the profits from the previous year. This is as a percentage of yearly pay, including overtime. But the % is equal for all, so everyone gets 5% or 10% for example.
There are other restrictions too, like how much the chairperson can be paid as a multiple of the average basic wage of the employees, and a part of the company board is elected employees from across the business.
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