The Ultimate Employee Buy-in
Sell the company to your employees? It’s a great idea–both for you and for the business you’re leaving behind.
Sell the company to your employees? It’s a great idea–both for you and for the business you’re leaving behind.
As government officials dawdled, Richard Zuschlag didn’t miss a beat. He sent his medics into flood-ravaged New Orleans, where they rescued more than 7,000 people.
Why is this employee benefit plan so popular in the engineering industry?
Growth rarely comes without growing pains, especially in the Darwinian world of retail. One of the major challenges for any successful business is managing growth by planning and executing effective strategies.
It is estimated that more than 20 million employees currently hold stock in their companies through a variety of benefit options, including employee stock ownership plans (ESOPs), broadly granted stock options, or 401(k) plans with heavy concentrations of employer stock.
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.
On September 30, the seven employees of Select Machine, in Brimfield, Ohio, began to purchase their company from the two retiring owners, Doug Beavers and Bill Sagaser, using an employee-owned cooperative.
An increasing number of engineering firms are adopting ESOPs because of their many benefits. “We’re seeing a resurgence in them,” says Matheson, managing director of Matheson Financial Advisors in Falls Church, Va. “There’s a growing trend.”
Using a leveraged ESOP to buy out a departing or retiring business owner is a strategy with considerable benefits for all involved.
In this paper, we use empirical analysis to analyze company characteristics associated with the adoption and maintenance of broad-based stock option plans. Overall, our results provide support to the claim that higher monitoring costs prompt firms to adopt and maintain employee stock option plans.
The survival rate of worker cooperatives and employee-owned firms in market economics appears to equal or surpass that of conventional firms. But they typically return a different combination of economic benefits to their member-owners than do conventional firms…
Over 25 years, The Davey Tree Expert Company’s employee owners built a good small company into one of the premier companies in its industry, with an entrepreneurial zest for new products and acquisitions. The company’s development would have pleased its inventive founder and provably surprised the family members who sold it to hesitant employees in 1979.
Democratic Capitalism combines the free-market energies of competition and private property with the enormous productivity and innovation released in an environment of trust and cooperation. Ray Carey presents the theory and practice of democratic capitalism by coupling his experience with a synthesis of the thought of Adam Smith, Karl Marx, and John Stuart Mill.
Can a support organization enhance the development and performance of an employee-owned sector in a market economy? That is the question this paper will address.
Research on employee ownership has focused on questions of productivity, profitability, and employee attitudes and behavior, while there has been little attention to the most basic measure of performance: survival of the company. This study uses data on all U.S. public companies as of 1988, following them through 2001 to examine how employee ownership is related to survival.
UAL suffered from particular design flaws in its stock ownership plan and, more seriously, the absence of complementary institutions focused on the distinctive problems of employee-owned firms.
There is a significant gap in the incidence and development of employee ownership between the European Union (EU) and the US when both sectors are examined.
Details a thinly disguised situation faced by a recent Harvard MBA graduate who was forced by a prospective employer to place a dollar value on a grant of stock options.
This paper presents finding from our most recent research on the transformation of participatory employment practices of Japanese firms in the 1990s, during which the Japanese economy slowed down considerably. The operation appears to be of particular public policy interest for many countries considering participatory employment practices as a way to improve their productivity performance and thus competitiveness.
Mike Katz, an MBA with several years of manufacturing management experience, talks about purchasing Molded Dimensions, Inc. (MDI), a Wisconsin-based plastics manufacturer, with his wife Linda, who also has a manufacturing background.
In the wake of the spectacular bankruptcies of Enron, United Airlines, and Polaroid, employee stock ownership plans have come under intense media scrutiny during the past year. The staggering losses of employees’ retirement savings have prompted pundits to predict the demise of ESOPs, and politicians to call for regulatory overhaul.
The fifty employee owners of Jet Rubber Company, a manufacturer of custom molded goods and rubber-to-metal parts founded in 1955, celebrated the 10th anniversary of their ESOP in March 2003.
Students prepare an analysis of Microsoft Corporation’s financial statements and footnotes to understand the impact of its use of stock options.
This article describes several forms of stock purchase plans in Canada and examines participation using the Workplace and Employee Survey. Some U.S. statistics are presented as well.