Pete Stavros was on a high after his latest experiment with employee ownership. As the head of industrial investments for KKR, Stavros orchestrated the sale of CHI Overhead Doors, which turned into KKR’s best investment in more than two decades and created $360 million in wealth for CHI’s blue collar workforce through broad-based employee ownership. … Read More
This case examines the decision by private equity firm KKR to grant equity to every employee at portfolio company CHI Overhead Doors upon purchasing the company in 2015. The case explores whether this initiative will create shared value, growing profits through better incentive alignment while creating wealth for low-wage manufacturing workers. While CHI witnessed some … Read More
KKR’s sale of CHI, the garage door manufacturer, made headlines for being one of KKR’s highest returns since the 1980s and the life changing pay-out of CHI’s hourly employees and truck drivers. After a movement led by Pete Stavros, Chairman of CHI and Co-Head of the Americas Private Equity platform at KKR, CHI management gave every employee … Read More
KKR’s sale of CHI, the garage door manufacturer, made headlines for being one of KKR’s highest returns since the 1980s and the life changing pay-out of CHI’s hourly employees and truck drivers. After a movement led by by Pete Stavros, Chairman of CHI and Co-Head of the Americas Private Equity platform at KKR, CHI management gave every … Read More
Free market capitalism is one of the great achievements of humankind, bringing prosperity and economic freedom to billions of people and contributing to a flowering of individual freedom and possibility that would have been unimaginable to our ancestors. Today, however, increasing global crises are posing the greatest threat this economic system has faced. Growing income … Read More
This paper examines the impact of an economy-wide shift to broad-based employee ownership on wealth concentration in the United States. Relying on government data, we show that if all private firms became 30% employee-owned, the wealth distribution would be profoundly altered. Those currently in the bottom 90% of the wealth distribution would see substantial gains, … Read More
Pallak Seth, Group CEO of PDS Multinational Fashions, is contemplating options to bring better collaboration across his global apparel supply chain platform. PDS, a group of 50-plus subsidiary companies, each led by its own CEO and with different apparel industry specialties, has grown rapidly over the past decade, yet the industry is increasingly competitive and … 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
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
MONDRAGON, the largest cooperative in the world, and the inspiration for several U.S. cooperatives, faces a challenge in 2013 after one of its largest cooperatives votes to leave the group and another goes bankrupt.
How could the managing director maintain the firm’s cooperative structure, address the nutritional needs of all Indians, make use of emerging technology, and navigate the country’s dairy policies in the coming years?
Monique Leroux led a major transformation, overcoming resistance, at a large Canadian financial cooperative based in Quebec that competed with top Canadian banks…
Elizabeth had a number of concerns related to the heavy use of employee stock options as incentives and employee compensation in the high-technology sector…
Mid-Missouri Energy is a farmer-owned cooperative created to take advantage of the growing interest in ethanol as an automotive fuel.
This technical note explains how agricultural cooperatives are structured and financed, as well as how they form partnerships with one another and other elements of the food system.
The case introduces students to the concepts of employee stock options, stock-splits and buybacks, multiple share classes, and the basics of equity investment and diversification.
The case looks at the two dominant Finnish retailers: S Group and Kesko. The case requires that students consider sources of competitive advantage that arise from the companies’ markedly different business models.
Can Mondragon Corp. Cooperativa (MCC) effectively become a global player while being truthful to the principles on which its past successes have been built?
CEO Jim Billings wants to attract energetic, entrepreneurial talent to Stone Finch, Inc.
Bertelsmann’s EVP HR Immanuel Hermreck and his team were focused on four key HR issues. Three of these were somewhat discreet: improving Bertelsmann’s employer brand; managing Bertelsmann talent across the firm’s decentralized businesses; and ensuring early identification and appropriate development of Bertelsmann’s top 100 high potential managers (hi-pos) to better seed the company’s future top management. The fourth issue-recruitment and retention-played an integral role across all three challenges and had to be strengthened and made consistent across the firm, not an easy prospect given Bertelsmann’s highly decentralized structure.
CEO Michael Mendes has transformed a grower-owned cooperative into a publicly traded top marketer of snack foods. Diamond’s organization, culture, product development process, advertising and promotion strategy, and specifically its marketing department have been built ‘from the ground up’ to address fundamental changes in retail structure and consumer behavior. Can the Diamond model be successfully applied to other food categories?
Employee-owners exhibit such enthusiasm for their organization that they infect countless customers with similar satisfaction, loyalty, and dedication. Customer-owners are in turn so satisfied with their experience that they relate their stories to others, persuade them to try your product, and provide constructive criticism and new product ideas.
Lincoln Electric (LE) has been sharing leadership and ownership with its employees for over 80 years. It has also become the global market leader in electric arc welding equipment with multiple factories overseas. This case begins by discussing how this has been done. The issue under consideration is if LE should expand into India and … Read More
Steve Voigt, the CEO of King Arthur Flour, must determine how the company can continue to grow, whilst preserving its unique culture. In 1996, the company was sold to employees in as ESOP transaction. The following decade saw significant growth, despite declining sales for the industry as a whole. The success could be attributed both … Read More
The footnote disclosure for eBay, Inc. in 2000 indicates that if the company had accounted for employee stock options under the fair value method, its reported profit of $48 million would have been a loss of $91 million.