There are multiple legal frameworks for that. The simplest way is to "just" have the company buy back shares and re-issue them to staff over time. Depending on

There are multiple legal frameworks for that. The simplest way is to "just" have the company buy back shares and re-issue them to staff over time. Depending on jurisdiction there can be more tax efficient ways. Some places it may be more practical and/or tax efficient to use trusts (e.g. the John Lewis Partnership in the UK, with 80,000 employees, is a trust for the benefit of employees - it means shares can't be cashed out, but all present employees share in dividends) and sell or give shares to the trust bit by bit.