<![CDATA[This study examines the impact of the Employee Stock Ownership Plan (ESOP) on the financial performance and employee productivity of PT Bank Rakyat Indonesia (Persero) Tbk during the 2020-2024 period. The primary objective is to evaluate how equity-based compensation serves as a strategic tool for corporate governance and human capital optimization in the Indonesian state-owned banking sector. Using a quantitative descriptive approach, the study utilizes secondary data sourced from the company’s audited annual reports. Financial performance is measured through Return on Assets (ROA) and Return on Equity (ROE), while employee productivity is assessed using operating revenue per employee. Data analysis was conducted via descriptive statistics and trend analysis to observe longitudinal shifts. The results indicate that financial performance remained robust and stable, with ROA averaging 2.39% (SD=0.82%) and ROE averaging 14.93% (SD=4.66%), thereby confirming H1. Furthermore, employee productivity showed a significant upward trajectory, increasing by 96.90% from Rp334.12 million in 2020 to Rp658.02 million per employee in 2024, confirming H2. In conclusion, the findings provide strong empirical support for Agency Theory and Human Capital Theory, suggesting that ESOP effectively aligns employee interests with shareholder goals, particularly during the post-pandemic recovery phase. This study implies that ESOP is a viable mechanism for maintaining competitive advantage in large-scale financial institutions.]]>
