As KKR, a private equity firm, prepared to take Gardner-Denver, one of its portfolio companies, public in mid-2017, a discussion arose on the Gardner-Denver board about the implications of granting approximately $110 million in equity to its global employee base as part of its innovative “broad-based employee ownership program.” KKR (formerly known as Kohlberg Kravis … Read More
This presentation explores two growing employee-owned companies in Africa, Sokowatch and mPharma, through dialogue with the companies’ CEOs. The presentation was delivered at the 2021 Beyster Symposium.
This case study describes John Lewis Partnership. John Lewis Company has been in business since 1864. In 1929, it became the John Lewis Partnership (JLP) when the son of the founder sold a portion of the firm to the employees. In 1955, he sold his remaining interest to the employee/partners. JLP has a constitution and … Read More
This PowerPoint presentation is a case study that is part of Class 4 from the Course: Topics in Corporate Governance: Techniques of Equity Compensation. The case study discusses Chatsworth Products, Inc. (CPI), a leading manufacturer of systems designed to organize, store and secure IT infrastructure equipment. This presentation and case study is part of the … Read More
This 2019 MIT Sloan case by Zeynep Ton and Katie Bach describes how the executive team at Mud Bay, a privately held pet store chain based in Olympia, Washington, implemented a good jobs strategy by offering better wages and benefits and seeking to recoup the costs by increasing sales growth and lowering other expenses.
Employee-owned businesses tend to outperform their competitors, a growing body of research shows. According to the National Center of Employee Ownership, businesses with employee ownership models grow sales and employment at a faster rate than businesses without such programs. Employee-owned firms also perform better than their counterparts during recessions, per research from Georgetown University. For … Read More
Mission-led employee-owned firms embody a powerful model of enterprise design for a new era of environmental sustainability and social equity. These companies have much to teach the business world about ownership design for the 21st century and beyond. This report shares the story of this emerging model, embodied in 50-plus firms that are employee owned … Read More
Olivia Nash, an analyst at leading hedge fund BlueShark Capital Management, had just finished listening to the hour-long earnings call for Twitter’s Q4 2017 results. Was Twitter doing well? That depended on which numbers she chose to believe. According to Generally Accepted Accounting Principles (GAAP), Twitter had recorded a $108M net loss for 2017. But … Read More
This PowerPoint presentation is Class 5 from the Course: Topics in Corporate Governance: Techniques of Equity Compensation. The session explores shareholders concerns regarding equity, building a culture of ownership, and effective leadership in an engaged company. This presentation is part of the Teaching Module: Topics in Corporate Governance: Techniques of Equity Compensation.
This PowerPoint presentation is Class 4 from the Course: Topics in Corporate Governance: Techniques of Equity Compensation. The session explores two employee-owned business, ATA Engineering, Inc. and Chatsworth Products, Inc. Case Study #1: ATA Engineering, Inc. Case Study #2: Chatsworth Products, Inc. This presentation is part of the Teaching Module: Topics in Corporate Governance: Techniques … Read More
This PowerPoint presentation is Class 3 from the Course: Topics in Corporate Governance: Techniques of Equity Compensation. The session explores the legal implications of equity compensation covering tax law and labor considerations; as well as future trends. This presentation is part of the Teaching Module: Topics in Corporate Governance: Techniques of Equity Compensation.
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 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.
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
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.
This case illustrates the rationale for adopting employee ownership, and difficulties in implementing employee empowerment beyond investment. In the beginning it focuses on why Jerry Pritchett, one of the co-founders of Pritchett Controls, decided to convert it to an employee-owned company. In the body of the case, it details the efforts of the company to … 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
The article suggests that when reward strategies fail, it is because they are frequently subsumed to a meaningless search for a best practice that delivers shareholder value that could be applied uniformly across countries, sectors, or workplace contexts. For instance, executive compensation schemes incorporating stock options are focused too much on delivering value for shareholders, … Read More
This two-page Business Action Guide describes the nation’s largest worker owned cooperative, Cooperative Home Care Associates, and its approach to effective onboarding and mentorship.
Synopsis Carris Reels, a reel-manufacturing company headquartered in Vermont, had long-standing goals of being employee owned and governed. They also had a strong organizational (ownership) culture. The Corporate Steering Committee (CSC), a committee composed of representatives from management and non-management employees, and the board of directors had a decision to make about adding two new … Read More