This PowerPoint presentation is Class 2 from the Course: Topics in Corporate Governance: Techniques of Equity Compensation. The session explores what non-qualified plans are covering legal factors, basic types, direct and indirect ownership tools, stock options and settlement choices. The session also explores synthetic equity. This presentation is part of the Teaching Module: Topics in … Read More
This technical note explores the many different forms of equity compensation. Equity compensation, defined as compensation that provides for the delivery of equity securities, aligns employees’ incentives with shareholder value driven by a company’s stock price. Equity compensation is used extensively to attract and retain key employees. However, the types of equity compensation differ in … Read More
This Teaching Module, designed by Anthony Mathews, covers the techniques used in equity compensation. The module consists of the course syllabus, five class sessions, two case studies and an Equity Compensation Cheat Sheet. Topics include qualified and non-qualified plans, legal implications, shareholders concerns regarding equity, building a culture of ownership, and effective leadership in an … Read More
This PowerPoint presentation is Class 1 from the Course: Topics in Corporate Governance: Techniques of Equity Compensation. The session explores the notion of equity as a currency of business; and explores the most “tax favored” techniques, qualified plans. This presentation is part of the Teaching Module: Topics in Corporate Governance: Techniques of Equity Compensation.
In a chart format, offers summaries of common equity compensation instruments, categorized with type of plan, benefits, tax and accounting treatment, and drawbacks. Also provides guidance on implementing equity compensation.
This case study focuses on Wawa, the convenience store, gas station and restaurant company. Founded in 1803, Wawa morphed over time from an iron foundry to a textile mill, to a dairy farm, dairy delivery business, grocery store, then convenience store. Dark clouds descended with the 2008 financial crisis. As competitors converged on Wawa, management … Read More
Purpose The purpose of this paper is to review the historical background for broad-based ownership in the USA, the development of forms of employee ownership and profit sharing in the USA, the research literature on employee ownership and profit sharing and related employee participation, the development of policy and options for new policies. Design/methodology/approach It … Read More
Course Description: Techniques of Equity Compensation is a skills-based 2 unit elective course designed to provide students a comprehensive understanding of equity as a compensation vehicle.
Values represent guidelines for behavior and are important determinants of organizational performance. In addition, employee-owned enterprises (EOEs) tend to outperform traditional organizations. Thus, identifying the core values that underlie successful EOEs should provide insights for improved firm performance. Based on an exploratory comparative analysis of eight high-performing, employee-owned companies, a common set of values that … Read More
In recent decades, workers’ paychecks have remained stagnant, despite increases in productivity. At the same time, returns to wealth have increased. Strategies that transform workers into owners, such as employee share ownership strategies, have the potential to give working people a stake in our growing economy and include them in the nation’s prosperity. With employee … Read More
With a growing prominence of sophisticated econometric research in a much-expanded field of New Economics of Participation (NEP), it is of particular value to learn about real-world examples of participatory and labor-managed firms in the advanced market economies through extensive case studies. In this volume of Advances in the Economic Analysis of Participatory and Labor-Managed Firms, … Read More
The closure of Fagor Electrodomésticos in October 2013, the most iconic cooperative in the Mondragon Group, not only cast doubt on the economic and social management of the cooperative itself but also called into question the very viability of the overall cooperative model.
The chapter reinforces the fundamental roles of information-sharing and participation in enterprises with shared ownership, while making key distinctions between shopfloor and office workers experiences and perceptions.
In spite of the rich body of evidence on the effects of HPWS, there are at least two relatively unexplored yet potentially important questions: (i) The conditions under which the HPWS is best introduced and best sustained; and (ii) in what way the HPWS will need to evolve when external environments change. Our findings fill … Read More
Immigrants are increasingly forming worker cooperatives, and the recent Denver taxi driver union-cooperative is one of the largest taxi cooperatives in the country. Current research on the labor empowerment consequences of these emerging immigrant cooperatives is sparse.
The employee benefits of employee ownership are not fully studied. This case contributes to understanding how employee ownership may reduce gender and racial wealth gaps, build family well-being, and become a model for structuring opportunity for those traditionally left out of the economic mainstream.
This case study provides an in-depth look at a company’s board of directors’ composition-related decision-making in the context of broad-based participatory processes and the desire to maintain a profitable and fully employee-owned and governed enterprise.
A review of the literature found that companies that practiced a progressive set of HRPP and made decisions based on democratic principles are rare. Thus, knowledge of such a company should be valuable.
Whereas prior studies have used across-industry data to find that employee-owned firms are more likely to survive recessions than others, what such firms do differently was unclear. A literature review failed to reveal a prior study that looked at the internal practices that may cause this to happen.
This report explores access to equity compensation and capital shares in the tech sector, which merits special attention for the following two reasons. First, the tech industry is heavily supported by the federal government. Second, outside industries often emulate the innovative culture and practices of the technology sector.
Purpose The purpose of this paper is to investigate the additive and differential effects of short-term-oriented group incentives (STOGIs) and long-term-oriented group incentives (LTOGIs) on psychological ownership and organizational commitment. Design/methodology/approach This study analyzed data from 17,255 US employees in the 2005 data set of the National Bureau of Economic Research Shared Capitalism Research. Findings … Read More
This is a slide presentation that Dr. Suzanne Cromlish developed for her classes. It introduces ESOPs and summarizes her research findings on ESOP acquisitions.
This qualitative research project focuses on a compare and contrast between acquisitions by ESOP and Non-ESOP organizations from a consultant’s perspective to obtain a third party viewpoint. Also discussed is a review of the academic literature on Mergers and Acquisitions, the reasons for failures, and possible solutions for successful acquisitions. An ESOP is an Employee … Read More
In this podcast Anthony Mathews discusses succession planning, exploring questions including: What type of company sets up an ESOP? What is the process of establishing an ESOP? What are some of the challenges companies face? What makes an ESOP different than a 401k or other plan? What are the tax advantages? How does having many … Read More
Led by CEO Zhang Ruimin, Haier in 30 years has gone from a money-losing, rigid hierarchy, state-owned, local firm to a profitable, flexible structure, collectively-owned, multinational enterprise. This transformation has been done in well-defined steps. In 2012, it was moving toward operating as a platform for microenterprises. The platform was to be open to both … Read More