When accepting a job offer, it is important to understand how to take advantage of the rewards of stock benefits while mitigating the risks. This short Harvard Business Review article reviews stock options and Restricted Stock Units (RSUs). Stock options allow you to purchase shares in your company’s stocks at a predetermined price, also known as … Read More
This teaching case study explores the dynamics and evolution of employee ownership in HDR, a large multinational professional services firm. Broad-based employee ownership has strong affinities with professional services firms, whose success largely depends on the knowledge and capabilities their employees bring to their work. As HDR grew and expanded internationally, it had to address … Read More
This step-by-step guide explains how to build an employee equity plan with an LLC. Giving employees an ownership stake in your company can help build a foundation for growth. Using different forms of equity, LLCs can attract and retain employees—and ensure they are invested in the company’s success. Learn how different LLC equity types work.
This research presentation was hosted by the Federal Reserve Bank of New York, in partnership with the Ford Foundation. The event explored how some companies are seeking to increase low- and moderate-income workers’ wealth through investments in ownership and employee benefits. Focus was on how efforts to improve the wealth of low- and moderate-income workers … Read More
MyPath grew steadily since its inception in 1984 in an industry rife with regulations and oversight. Navigating the healthcare landscape and advocating for its disabled patients became a hallmark of the organization. Through the years, a strong culture emerged thanks in part to employee ownership which contributed to a ‘can-do’ attitude found at all levels … Read More
Wages don’t cover the bills. Wealth inequality is growing. Social trust is eroding. There are endless debates about what to do, but one key factor is inexplicably left out: who owns the companies that drive the economy? Ownership matters. Ownership by a few means benefits for a few. But if you spread ownership around, you … Read More
An urgent and deeply resonant case for the power of workplace democracy to restore balance between economy and society. What happens to a society—and a planet—when capitalism outgrows democracy? The tensions between democracy and capitalism are longstanding, and they have been laid bare by the social effects of COVID-19. The narrative of “essential workers” has … Read More
Carta’s Equity 101 is a free, interactive course designed to help everyone learn the fundamentals of equity. The course breaks down the basics of equity into 10 interactive lessons, covering the fundamentals including receiving a grant, selling shares, and taxation. In about an hour, users can learn basic terms and useful information, beginning from the … Read More
Laws in many countries mandate paying men and women equally when in similar jobs. Such laws, coupled with considerable organizational efforts, lead some scholars to contend that within-job pay inequality is no longer a source of the gender pay gap. This article argues important differences in a widely used form of pay heretofore overlooked in … Read More
Even before the pandemic, many workers struggled to build wealth. Divisions between men and women, and between white households and households of color, are particularly striking. The pandemic has exacerbated and heightened awareness of these inequities, and there is a mounting sense of urgency to find practical solutions. Increasing participation in business ownership can help … Read More
This PowerPoint presentation is a case study that is part of Class 4 from the Course: Topics in Corporate Governance: Techniques of Equity Compensation. The case study discusses Chatsworth Products, Inc. (CPI), a leading manufacturer of systems designed to organize, store and secure IT infrastructure equipment. This presentation and case study is part of the … Read More
The CEPI provides unbiased guidance and resources for issuers, service providers and auditors. This combined 4-in-1 volume covers Employee Stock Purchase Plans, Restricted Stock and Restricted Stock Units, Performance Awards, and Global Equity Plans. This volume is designed to help prepare people for examinations necessary to achieve the Certified Equity Professional designation from the Certified … Read More
In this short video, Dr. Marshall Vance describes his research on equity compensation and its effects. “Different kinds of employees respond differently to equity compensation.”
As the wealth gap continues to grow, especially along racial lines, stakeholders – movement leaders, workers, and aligned investors – are considering a broader array of options for creating asset-building opportunities for marginalized communities and giving them meaningful voice. Employee ownership is a way for workers to participate in the value they create, exercise their … Read More
Using novel compensation data from two technology organizations that have been recognized as leaders for their gender equality efforts, we show that even when organizations are taking active steps to reduce gender inequality (and thus, likely have the best of intentions), pay gaps between female and male employees continue to exist. Specifically, we find that … Read More
The mainstream economic theory that guides corporations in the US only works if markets are perfectly efficient. This flawed theory has led to corporate decision-making that centers shareholders above all else, including other stakeholders (e.g., workers), long-term business growth, and economic health. This shareholder-first ideology is referred to as “shareholder primacy,” which does not reflect … Read More
J. Doug Pruitt talks about the Sundt ESOP program.
The two key ways organizations can increase equity participation and employee share ownership are to help employees accumulate wealth while managing their financial risks, and implement policies and practices that create an engaging ownership culture. Based on a large body of research mostly conducted by Rutgers Institute for Employee Ownership and Profit Sharing, the top … Read More
This PowerPoint presentation is Class 5 from the Course: Topics in Corporate Governance: Techniques of Equity Compensation. The session explores shareholders concerns regarding equity, building a culture of ownership, and effective leadership in an engaged company. This presentation is part of the Teaching Module: Topics in Corporate Governance: Techniques of Equity Compensation.
This PowerPoint presentation is Class 4 from the Course: Topics in Corporate Governance: Techniques of Equity Compensation. The session explores two employee-owned business, ATA Engineering, Inc. and Chatsworth Products, Inc. Case Study #1: ATA Engineering, Inc. Case Study #2: Chatsworth Products, Inc. This presentation is part of the Teaching Module: Topics in Corporate Governance: Techniques … Read More
This technical note explores the many different forms of equity compensation. Equity compensation, defined as compensation that provides for the delivery of equity securities, aligns employees’ incentives with shareholder value driven by a company’s stock price. Equity compensation is used extensively to attract and retain key employees. However, the types of equity compensation differ in … Read More
This PowerPoint presentation is Class 3 from the Course: Topics in Corporate Governance: Techniques of Equity Compensation. The session explores the legal implications of equity compensation covering tax law and labor considerations; as well as future trends. This presentation is part of the Teaching Module: Topics in Corporate Governance: Techniques of Equity Compensation.
This PowerPoint presentation is Class 2 from the Course: Topics in Corporate Governance: Techniques of Equity Compensation. The session explores what non-qualified plans are covering legal factors, basic types, direct and indirect ownership tools, stock options and settlement choices. The session also explores synthetic equity. This presentation is part of the Teaching Module: Topics in … Read More
This technical note explores the many different forms of equity compensation. Equity compensation, defined as compensation that provides for the delivery of equity securities, aligns employees’ incentives with shareholder value driven by a company’s stock price. Equity compensation is used extensively to attract and retain key employees. However, the types of equity compensation differ in … Read More
This Teaching Module, designed by Anthony Mathews, covers the techniques used in equity compensation. The module consists of the course syllabus, five class sessions, two case studies and an Equity Compensation Cheat Sheet. Topics include qualified and non-qualified plans, legal implications, shareholders concerns regarding equity, building a culture of ownership, and effective leadership in an … Read More