How to Level the Compensation Playing Field: Employee Ownership
Outrage over pay differentials between company workers and directors is making political waves in Britain. One solution? Employee ownership.
Jimmy Fu and Moog, Inc.: Understanding Shareholders’ Equity
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.
Complementarity of Shared Compensation and Decision-Making Systems: Evidence from the American Labor Market
In the 1990s an increasing proportion of US firms moved toward compensation systems that made part of pay depend on the economic performance of work-groups or the firm.
Does Employee Ignorance Undermine Shared Capitalism?
This paper analyzes a survey of employees from multiple companies to assess the extent to which employees are ignorant about company, group, and individual-based incentive pay plans and ESOPs.
CHART Rehabilitation of Hawaii
Frieda Takaki took a deep breath, filling her senses. She was about to make a very difficult decision. She took off her shoes, placed them next to her desk and started pacing her office barefoot as she was thinking aloud. “I can’t let this business close down,” she whispered. “I have to do something about it.” The answer was now abundantly clear: why wouldn’t the employees buy the business from the owners?
Maui Divers of Hawaii
Maui Divers established its employee ownership plan in 1997. Maui Divers store managers/employee owners embrace the business as their own. Although the final decision belongs to the company management team, store managers excel in increasing sales and they continuously come up with business plans in order to make the business better.
The Employee Ownership Effect: A Review of the Evidence
The report is a rigorous study of the available international evidence into how companies with significant employee ownership perform, on a range of key business indicators.
Model Growth: Do Employee-owned Businesses Deliver Sustainable Performance?
This research looks at how employee-owned businesses performed before and during the 2007-2009 recession. This report assesses the financial performance of employee-owned businesses compared with conventionally structured companies where employees do not have a significant stake in ownership or the right to participate in decision-making.
Stone Finch, Inc.: Young Division, Old Division
CEO Jim Billings wants to attract energetic, entrepreneurial talent to Stone Finch, Inc.
Equity on Demand: The Netflix Approach to Compensation
Netflix was among a small group of Silicon Valley companies to emerge from the technology bubble of the late 1990s a clear winner in terms of growth, market share, and profitability. That Netflix was able not only to prevail over this competition but also to thrive was largely attributable to the culture of freedom and … Read More
Managing Talent at Bertelsmann AG (A)
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.
The National Center for Employee Ownership
The National Center for Employee Ownership (NCEO) is a private, nonprofit membership and research organization that serves as the leading source of information on employee stock ownership plans, equity compensation plans such as stock options, and ownership culture.
Beyster Institute’s Employee Ownership Management Program, 2010
Curriculum material for Beyster Institute’s Employee Ownership Management Program, a seminar presented at the Rady School, UCSD.
Broad-Based Stock Options and Company Performance: What the Research Tells Us
The authors found that companies with broad-based stock option plans (here, defined as those where most nonmanagement employees receive option grants) had statistically significant higher productivity levels and annual growth rates than public companies in general and their peers.
Privately Held Employee Owned Socially Responsible Business, Sustaining Inspiration: The Challenges & Opportunities of Running a Privately Held, Employee Owned, Socially Responsible Business
Kevin Cleary, President and COO of Emeryville, California based Clif Bar & Company, explores how this privately held, employee owned company is also socially responsible. Series: ‘UC Davis Graduate School of Management’s Dean’s Distinguished Speaker Series’
Employee Ownership: A Topic for the Entrepreneurship Curriculum
This Teaching module shows four areas in the entrepreneurship curriculum where teaching about employee ownership can 1) put a needed spotlight on this widespread and useful practice and 2) add conceptual value and rich examples for the course topics being taught…
Topics in Corporate Governance: Techniques of Equity Compensation
This course is designed to give students the capacity to understand and evaluate the various tools and techniques available under current law and practice for applying corporate equity as a compensation and motivation vehicle for employees.
The Beyster Fellowship Symposium Video Series
The Beyster Fellowship Symposium brings together academic leaders and new scholars involved with evaluating broad-based employee ownership (EO) and entrepreneurism. The first symposium was held July 2009 in La Jolla, CA. Over 40 academics shared their research findings and participated in an MIT Enterprise Forum panel discussion, which was attended by more than 200 people. The following are videos of Symposium presentations highlighting multiple dimensions of the history, development, and process of employee ownership.
Communications Company Practises Full Disclosure and Transparency When Implementing ESOP
The Toronto-based advertising and communications agency recently implemented an employee share ownership plan (ESOP), that has allotted 49 per cent of the company’s shares to potential and existing staff members.
Gainsharing as Organizational Learning: An Analysis of Employee Suggestions Over Time
This paper addresses the issue of how gainsharing programs work by proposing a model of gainsharing as an organizational learning system.
Five Key Errors in Designing Equity Compensation Plans in Closely Held Companies
I have had dozens of conversations with business owners who want to share equity with some or all employees over the past several years.
Innovation Included: Why Co-Owned Businesses Are Good for Public Services
Written by internationally acclaimed business writer Charlie Leadbeater, Innovation Included makes the case for more public services to be provided by co-owned companies.
People and Organizations
This course provides an understanding of the human and organizational contexts in which the student will be working and the skills to put the scientific, technical and organizational knowledge learned to work in addressing the major challenges facing management and organizations today.
Corporate Governance and Labor Relations
I view corporate governance as a process of designing and implementing various implicit and explicit contracts among capital providers, corporate managers, workers, and other important stakeholders. In my talk today, I will expand the scope of the typical shareholder value focus to consider the design and implementation of contracts with other stakeholders, particularly employees and organized labor.
When Workers Share in Profits: Effort and Responses to Shirking
This paper summarizes new evidence from the “Shared Capitalism” Project on the extent to which workers’ earnings depend on the performance of their firm or work group in the US and advanced European countries and on the impact of sharing arrangements on economic behavior.