Southwest Airlines, consistently ranked as one of the top performing airlines in the business, began a profit-sharing plan in 1974.
This report compares the performance of corporations that offer their employees broad-based stock option plans to those that do not offer their employees broad-based stock option plans.
The results of this study showed that ESOP companies perform better in the post-ESOP period than their pre-ESOP performance would have predicted.
At a time when employers are searching for new and innovative ways to motivate and retain key talent, employee stock ownership plans are proving to be powerful retention and reward strategies that have a positive impact on profitability, revenue growth, and productivity.
There are at least six reasons why we should be concerned with encouraging employee ownership at thesubnational level: at the level of the state, the province, the region, the municipality, or other subnationalgovernmental units or at the level of the industrial branch, cutting across governmental geographic units.
This case examines several strategies advocated by various actors in the Nucor Corporation, a major producer of steel.
While the company has been extraordinarily innovative to date, Cisco Systems is far from complacent about being able to maintain its leadership position with respect to e-business practices.
This case describes Microsoft’s human resource philosophies and policies and illustrates how they work in practice to provide the company with a major source of competitive advantage. Discusses employee development, motivation, and retention efforts in one of Microsoft’s product groups.
Lucent was created in 1994 as part of AT&T’s tri-vestiture. This case focuses on the dilemma faced by a new company that inherited a labor-management consultation structure developed by AT&T, a structure that has broken down in many respects, and that does not seem adequate to the challenges of the new company in a new and highly competitive market…
In 1994 United Airlines became the largest employee majority-owned enterprise in the United States, with various groups of employees – most represented by unions – having purchased 55% of its stock in exchange for various concessions. The employees accepted pay cuts and made other concessions, but were also granted representation on the company’s board of directors…[newline]
Cisco Systems, specializing in network systems that link computers and provide Internet communications, was founded in 1990. Employee compensation is closely tied to company and individual performance through stock ownership and profit-sharing, and performance is focused on customer satisfaction. Cisco has grown mainly by acquisition, always trying to stay ahead of the next best technological … Read More
Following a successful corporate turnaround and, more recently, a leveraged recapitalization, management of a highly profitable, fast–growing outdoor advertising company must consider alternative ways to harvest cash flow from the company without jeopardizing the turnaround or incurring significant tax liabilities.
Colt Industries is a conglomerate that is considering undertaking a leveraged recapitalization.
A company nears the end of a long multiyear turnaround and now must consider how to “cash out” so its management can realize a financial return on investment. The privately held company has several options, including a leveraged ESOP and a leveraged recapitalization.
Employee share schemes are becoming more prevalent worldwide. Originally designed as an ownership-broadening technique of finance, the term ‘ESOP’ is now used to describe a wide variety of employee participation strategies covering a diverse array of applications. ESOPs are best known for their adaptability and flexibility across a broad range of economic, political, and cultural circumstances.
William Apfelbaum, president and CEO of Transportation Displays, Inc., must restructure both the company’s method of doing business and its liabilities to keep it from bankruptcy. The value he hopes to receive from the reorganized company will be an important issue in the restructuring negotiations with creditors.
Customer satisfaction incentive schemes are increasingly common in a variety of industries. We offer explanations as to how and when incenting employees on customer satisfaction is profitable and offer several recommendations for improving upon current practice.
Transportation Displays, Inc. has gone through a series of restructurings. This case describes the last few stages, which substantially reduced debt and increased the ownership of management.
This case describes the innovative approach to organizing and managing employees by People Express and describes the company’s eventual demise.
With ESOPs performing so well more American managers should consider adopting this approach.
Mr. William Cooper Procter’s successful plan under which hundreds of employees that make less than $1500 a year in wages have acquired stock that is worth thousands of dollars.