The most successful ESOP companies have one thing in common. Their employees are not just motivated and engaged, they are actively engaged in structured opportunities to identify problems and generate new ideas. Open doors are not enough; you need a system that not only makes this possible but makes it part of people’s jobs. This … Read More
Why a low-cost program to educate employees about company ownership could produce huge financial benefits for the country.
This book describes the full spectrum of equity compensation plans (such as stock options, stock purchase plans, stock grants, restricted stock, phantom stock, and stock appreciation rights) available to private and public companies as well as LLCs. Unlike most books on equity compensation, it focuses on helping decision-makers decide what kinds of equity to choose, and who should get how much and when.
I have had dozens of conversations with business owners who want to share equity with some or all employees over the past several years.
The large majority of ESOPs are funded by the company with no individual choices or directions, so losses to one participant’s account are likely to be mirrored in accounts of other participants.
Our experience and research over the 30 years that employee ownership has shown two distinctive realities: first, overall, employee ownership gives companies a performance advantage—”the ownership edge.” Second, there is no ready-to-use process to guarantee that a company will achieve the ownership edge. There are, however, six clusters of practices that appear again and again in successful ownership companies. This article describes these six components of ownership management and illustrates the myriad ways in which companies implement them.
Study after study proves that broad-based ownership, when done right, leads to higher productivity, lower workforce turnover, better recruits, and bigger profits. ‘Done right’ is the key.
Today, more than 25 percent of American workers own stock in their employers. Now Corey Rosen, John Case, and Martin Staubus present convincing evidence that employee ownership can be much more than just a good benefit program.
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.
Provides information on the basic mechanisms of employee ownership, how employee ownership can be a means to community economic development, and the growth of stock ownership plans abroad.
With ESOPs performing so well more American managers should consider adopting this approach.