Employee ownership is often used not only as a reward management tool but also as an entrenchment mechanism. The literature suggests that good managers use employee ownership as a reward management tool, whereas bad managers implement it for entrenchment, thus suggesting the existence of an equilibrium level of employee ownership. The contributions of this paper … Read More
While intuition suggests that empowering workers to have some say in the control of the firm is likely to have beneficial effects, empirical evidence of such effects is hard to come by because of numerous confounding factors in the naturally occurring data. We report evidence from a real‐effort experiment confirming that worker performance is sensitive … Read More
This paper analyzes participation decisions in employee stock purchase plans. These plans allow employees to buy company stock at a discount from the market price and resell it immediately for a sure profit. Although an average employee stands to gain $3,079 annually, only 30% of individuals take advantage of this risk-free opportunity. Participation is more … Read More
Equal Exchange is a cooperative organization that taps into the full capacities of everyone involved in a socially responsible way. This article describes how it has used the wisdom of its multiple stakeholders to create a collaborative community, to be profitable, and to have significant positive impact on people’s lives and the environment in approximately 20 countries.
This case study describes Huawei, a Chinese telecommunications equipment company, which heavily utilizes ESOP ownership, and applies Huawei’s results to describe ESOPs as a powerful tool for achieving corporate efficiency and growth.
We investigate which factors influence 44,649 employees’ decision to invest in a top retail banking group in France. We have two objectives: (i) to explore factors associated with the amount invested in the plan, and (ii) to explore whether these factors have same associations with the probability of investing more than the incentive pay i.e. … Read More
There are three reasons for promoting mutual building societies: they are less prone than banks to pursue risky speculative activity; a mixed system produces a more stable financial sector; and a stronger mutual sector enhances competition within the financial system.
We examine whether options granted to non-executive employees affect the performance of the firm by exploring the link between broad-based option plans, option portfolio implied incentives, and firm operating performance.
First, the authors developed a scale for psychological ownership with four components — self-efficacy, accountability, sense of belongingness, and self-identity. Second, they correlated it with transformational leadership, organizational citizenship behavior, organizational commitment, workplace deviance, intentions to stay, and job satisfaction. All the correlations were in the predicted direction. The authors concluded that integrating psychological ownership … Read More
This paper addresses the issue of how gainsharing programs work by proposing a model of gainsharing as an organizational learning system.
Through this article, we will demonstrate how the creation of private insurance coverage for ESOPs would help to eliminate, or at least reduce, the problem of the large downside risks associated with these quasi-retirement plans. In order to fully develop this assertion and the reasoning behind it, we will explore how ESOPs fit within ERISA. … Read More
This paper explores how share repurchases affect the extant employee compensation contracts and offer a new explanation for the popularity of stock buybacks.
I view corporate governance as a process of designing and implementing various implicit and explicit contracts among capital providers, corporate managers, workers, and other important stakeholders. In my talk today, I will expand the scope of the typical shareholder value focus to consider the design and implementation of contracts with other stakeholders, particularly employees and organized labor.
Sharing company ownership with employees – whether it’s intended to motivate, to retain or simply to share the wealth – can significantly impact a company’s success. Studies have shown that employee-owned companies boast faster growth, are more resilient in economic downturns and enjoy a competitive advantage over conventional rivals.
Presented in this case is the Carris Companies’ movement towards 100% employee shared ownership and governance with an emphasis on and investment in education; focus on ‘quality of life’; economic, educational and social accessibility provided by the company for its employees, many of whom are unskilled at the time of initial employment; encouragement of employee wellness; employee involvement in corporate decision-making and philanthropy; companies’ increased efforts to reduce waste and energy use and the overall positive effects on the companies’ profitability…
This paper brings into focus the impact of employee buyouts on corporate governance in transition ten years after the large-scale privatization took place in Russia.
Is worker-ownership an instrument for solidarity and social change? Will its organizational form stimulate a social consciousness that leads members to be involved with social movements such as community development, labor activism, environmental campaigning, or human rights promotion? To answer these questions Luhman offers textual data that suggest that worker-ownership may be an effective instrument for solidarity and social change dependent upon the collective political vision of the members.
CFOs may wonder about the best ways to keep stock-owning employees committed to the company after an IPO. Research by corporate finance professors Peter Roosenboom and Tjalling van der Groot shows a decrease in insiders’ stock ownership from 52.1% before the IPO to 34% afterward, an indication of the powerful financial lure a post-IPO stock sale presents.
In the relationship between unions and employee share ownership, neither threatened the other, and their combination led to benefits for employees, particularly where unionized employees were majority owners.
This study examines the development of economic democracy in the United States since the 1700s with particular emphasis on the last 30 years. The particular focus is on employee ownership…
That individuals work harder, better and with greater enthusiasm when they have a direct interest in the outcome is self-evident to most people. The obvious question is: Why aren’t large numbers of businesses organized on this principle? The answer is: In fact, thousands and thousands of them are.
The authors investigate how worker-owned and capitalist enterprises differ with respect to wages, employment, and capital in Italy, the market economy with the greatest incidence of worker-owned and worker-managed firms.
Growth rarely comes without growing pains, especially in the Darwinian world of retail. One of the major challenges for any successful business is managing growth by planning and executing effective strategies.
Study after study proves that broad-based ownership, when done right, leads to higher productivity, lower workforce turnover, better recruits, and bigger profits. ‘Done right’ is the key.
It has been observed that corporate law and labour (or employment) law are in essence separate fields of legal scholarship and regulatory policy. This separation does not mean that there has been no interest by company lawyers in labour law or vice versa; nor does it mean that the two fields do not have relevance to one another. Clearly both corporate law and labour law have provided certain fundamental starting points for analysis which have helped shape the regulatory scope of each other.