Sally Jameson: Valuing Stock Options in a Compensation Package
Details a thinly disguised situation faced by a recent Harvard MBA graduate who was forced by a prospective employer to place a dollar value on a grant of stock options.
Labor Markets and Firm Benefit Policies in Japan and the United States
This paper presents finding from our most recent research on the transformation of participatory employment practices of Japanese firms in the 1990s, during which the Japanese economy slowed down considerably. The operation appears to be of particular public policy interest for many countries considering participatory employment practices as a way to improve their productivity performance and thus competitiveness.
Molded Dimensions, Inc.
Mike Katz, an MBA with several years of manufacturing management experience, talks about purchasing Molded Dimensions, Inc. (MDI), a Wisconsin-based plastics manufacturer, with his wife Linda, who also has a manufacturing background.
Jet Rubber: Ten Years of ESOP Success
The fifty employee owners of Jet Rubber Company, a manufacturer of custom molded goods and rubber-to-metal parts founded in 1955, celebrated the 10th anniversary of their ESOP in March 2003.
Split Personality: an ESOP is a Retirement Plan. No, It’s an Ownership Investment. Wait—It’s Neither One – Benefits
In the wake of the spectacular bankruptcies of Enron, United Airlines, and Polaroid, employee stock ownership plans have come under intense media scrutiny during the past year. The staggering losses of employees’ retirement savings have prompted pundits to predict the demise of ESOPs, and politicians to call for regulatory overhaul.
Employee Stock Options at Microsoft Corporation
Students prepare an analysis of Microsoft Corporation’s financial statements and footnotes to understand the impact of its use of stock options.
Taking Stock of Equity Compensation
This article describes several forms of stock purchase plans in Canada and examines participation using the Workplace and Employee Survey. Some U.S. statistics are presented as well.
Governing the Firm: Workers’ Control in Theory and Practice
Many explanations for the rarity of workers’ control have been offered, but there have been few attempts to assess these hypotheses in a systematic way. This book draws upon economic theory, statistical evidence, and case studies to frame an explanation.
Are We Out of Options?
They were the currency of the American dream. Now they are worthless paper — a symbol of CEO greed. What went wrong with stock options? Where do companies go from here? Our only option: Visit one of the world’s leading authorities on employee ownership.
In the Company of Owners: The Truth About Stock Options and Why Every Employee Should Have Them
The string of business scandals that recently engulfed America painted a picture of corporate chieftains lining their pockets by cutting corners, cooking the books, and duping gullible investors. In doing so, greedy CEOs have hijacked what could be one of the most important business innovations in decades: stock options for all employees.
Strategic Stakeholder Perspective to ESOP Negotiations: The Case of United Airlines
Employee stock ownership programs (ESOP) may become a source of competitive advantage but a threat to a firm’s survival as well. Strategic stakeholder negotiation, on the other hand, is a process through which an organization negotiates with multiple stakeholders in order to achieve a strategic goal. Such perspective helps to illustrate the importance of understanding, balancing, and managing stakeholder demands in ESOP-related negotiations. The airline industry provides an interesting arena in which to study this process.
Groundings of Voice in Employee Rights
The author considers the idea that employee ownership of the organizations they work in can influence the dynamics of ‘sustainable peace.’
Motivating Employee-Owners in ESOP Firms: Human Resource Policies and Company Performance
The growth of ESOPs over the past 25 years is part of a general growth in compensation arrangements linking worker pay to company performance, including profit sharing, gain-sharing, and broad-based stock options in addition to the various methods of employee ownership.
United is a Poor Model for Employee Ownership
It would be easy to look at what’s happening at United Airlines, now on the brink of bankruptcy, and conclude that the concept of employee ownership in America has fallen into a tailspin.
Working Toward Transparency and Accountability: Carris Companies Governance
This conceptual paper based on a case examines some of the devastating impacts of the recent spate of corporate wrongdoing, noting the widespread interconnectivity and interrelationships these demonstrate; revisits the roots of capitalism and the underpinnings of corporate citizenship; and explores the efforts of the Carris Companies as they implemented their plan for 100% employee ownership and governance, working toward full transparency and accountability in their decision-making.
Compensation at Level 3 Communications
Level 3’s unique compensation plan rewarded managers for the firm’s performance only if the firm’s stock price movement exceeded that of the market. This design was intended to maximize shareholder value by tying managers’ performance more closely to that of the firm.
Carris Companies’ Practice of Employee Governance
Distinguishing the Carris Companies’ transition to 100% employee ownership was its more unusual movement towards 100% employee governance. This paper examines the Carris Companies’ practice of governance and the process used to prepare stakeholder citizens for their changing roles and relationships.
Broad-Based Employee Stock Options in US ‘New Economy’ Firms
This paper compares the performance of 229 `New Economy’ firms offering broad-based stock options to that of their non-stock option counterparts. A simple comparison of these firms reveals that the former have higher shareholder returns, Tobin’s q and new knowledge generation.
Ownership Management: Building a Culture of Lasting Innovation
This book draws on the National Center for Employee Ownership’s over 20 years of experience in the field, and, more importantly, the experience of the leading employee ownership companies.
Incentive Compensation and Employee Ownership
This book takes a broad look at how to use incentives, ranging from stock options to cash bonuses to gainsharing, to motivate and reward employees in dynamic companies that seek to create a more productive ‘ownership’ culture.
Research Evidence on Prevalence and Effects of Employee Ownership
The idea of employee ownership has attracted support across the political spectrum, often being seen as a form of economic democracy that complements our political democracy. Along with these positive views, however, there have been many concerns expressed about employee ownership particularly that it can expose workers to excessive risk and may in some cases increase labor management conflict and lower economic performance.
Worker Participation: Lessons from the Workers Co-Ops of the Pacific Northwest
The purpose of this book is to consider some consequences of worker participation in production and to provide an accessible economics perspective on two groups of worker co-ops in the Pacific Northwest: the plywood co-ops and the forestry worker co-ops.
Starbucks Coffee Company
This case traces the origins of Starbucks and its rapid growth through joint partnerships and diversified products, and its rapid expansion of retail cafes. A profile of Starbuck’s financial contributions to community development and literacy projects, and its efforts to promote progressive workplace conditions is presented. Despite this, criticisms of pushing out local businesses, homogenization … Read More
Southwest Airlines Corporation
Southwest Airlines, consistently ranked as one of the top performing airlines in the business, began a profit-sharing plan in 1974.
Broad-Based Employee Stock Options – A Union-Nonunion Comparison
Until recently, stock options were primarily reserved for senior executives and selected managers in most American corporations. In the last decade or so, however, stock options have become part of the compensation package for an increasing number of rank-and-file employees.