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Does Employee Ownership Improve Performance? Employee Ownership Generally Increases Firm Performance and Worker Outcomes

Douglas Kruse | May, 2022

Employee ownership has attracted growing attention for its potential to improve economic outcomes for companies, workers, and the economy in general, and help reduce inequality. Over 100 studies across many countries indicate that employee ownership is generally linked to better productivity, pay, job stability, and firm survival—though the effects are dispersed and causation is difficult … Read More

Do Employee Share Owners Face Too Much Financial Risk?

Dan Weltmann, Douglas Kruse, Joseph Blasi, Jung Ook Kim, Saehee Kang, William Castellano | April, 2019

A major theoretical objection against employee ownership is that workers become inadequately diversified and exposed to excessive financial risk. Recent theory concludes that 10-15% of a worker’s wealth portfolio can be prudently invested in employer stock provided the rest of the portfolio is properly diversified. This paper analyzes employee share ownership in U.S. family financial … Read More