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.
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.
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.
The author considers the idea that employee ownership of the organizations they work in can influence the dynamics of ‘sustainable peace.’
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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, consistently ranked as one of the top performing airlines in the business, began a profit-sharing plan in 1974.
Following a brief description of the methodology employed within this chapter, background information is provided on the Carris Companies. Changing stakeholder relationships highlighted in the segment on employee ownership provide a foundation for understanding the transitional process within the Carris Companies and, specifically, the practice of governance.
In May 1995, about 19 months after emerging from the Chapter 11 bankruptcy it filed in 1993, Trans World Airlines issued a proxy statement to seek the consent of its shareholders and certain creditors for another debt restructuring plan.
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.
Topics include: ownership and motivation, different ways to become an owner, and does ownership make a difference?
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.
The Ohio Employee Ownership Center (OEOC) is a non-profit, university-based program that provides outreach, information, and preliminary technical assistance to Ohio employees and business owners interested in exploring employee ownership.
This case examines several strategies advocated by various actors in the Nucor Corporation, a major producer of steel.