by: Scott, Bill
Source: The Foundation for Enterprise Development
Employee ownership can be very good for a company's founders and longest-term employees. Why? Because they often end up owning a substantial amount of the company's stock. However, newer employees can also accumulate significant wealth. At Science Applications International Corporation (SAIC)—the largest employee-owned science and engineering firm in the United States—the ownership principle was that those whocontributed to the company's success should become owners, and that ownership should be commensurate with each employee's contribution. Employees who have contributed longer will naturally own more of the company than those who have contributed over a shorter period of time.
Link: Myth #1: Employee Ownership Is Good for Founders……But Not so Good for Most Employees
Publication Date: 2008-01-01