This course is presented from the perspective of the entrepreneur and employee owner. The seven week course will cover the critical steps of equity and employee ownership; founding your own company or joining a start–up, successfully navigating funding rounds, deploying your equity to incentivize employees and encourage long–term growth, or negotiating through an exit.
In this issue, we close the loop on the triangular governance structure that supports ESOP companies and discuss the role of the ESOP itself as reflected in the duties and functions of the ESOP fiduciary (the trustee).
A tale of entrepreneurship – and a leading holiday decoration company becomes employee owned…
With all the news about company bankruptcies, increased government regulations, higher equipment costs and economic uncertainty, some motor-carrier owners are looking for options…
Section 1042 of the Internal Revenue Code allows for the deferral of capital gains tax when selling qualified securities to an employee stock ownership plan (ESOP). Here are 10 things we think selling shareholders should know about the 1042 election.
When things go wrong at work, as they occasionally do, a common first reaction is to look for the culprit(s). This can lead to punishment which may result in the ‘evildoer(s)’ being severely reprimanded, or even terminated. Unfortunately, not only does the problem often remain unsolved, the organization is left with another challenge of replacing a person or two. There may be a better way that doesn’t result in a lose-lose situation…
What are the best strategies for aligning equity incentives for all stakeholders, and what lessons can be drawn from cutting-edge research in the area?
What is the function of senior management in the governance of ESOP companies? Simply put, the function of management in an ESOP company is the same as in any other company – to manage very well to achieve strategic objectives and to participate in the strategic operation of the company by giving the board feedback on how the strategic plan is being successfully implemented and, more important, where it is failing.
In the wake of the 2010 Massey mining disaster in West Virginia, the author asks whether employee ownership could improve workplace safety, and how such cooperatives might serve as a model for an alternative form of capitalism based on the sustainable use of natural and human resources.
Employee Ownership 101 is designed as a concept exploration two unit elective course. After completing the course, students will have an understanding of the role of private capital in the development of wealth and the evolution of private capital from its earliest forms to our modern capitalist system.
After completing the course, students will have an understanding of the philosophical and theoretical bases for broadening access to capital among wider ranges of the population as a way of strengthening the capitalist model.
After completing the course, students will have 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 as well as a tax and cost effective vehicle for assisting in business succession and capital expansion.
After completing the course, students will have an understanding of the governance structures that control modern corporations, the relationship between ownership of equity of a corporation and its control.
After completing the course, students will have an understanding of the factors that affect the long and short term lifespan of an employee owned company.
After completing the course, students will have an understanding of the numerous techniques of information sharing and participative management which seem to define an ownership culture.
Before running off and launching a start-up business, one of the most important things an entrepreneur must think through is how to best handle equity in the company…
This study, which consists of two essays, examines the performance effects of a deferred equity plan on both individual employee and business unit outcomes. The first essay investigates the effects of deferred compensation plan characteristics on voluntary turnover decisions, using detailed data on store-level employees of a large retail firm. Overall, I find that employees … Read More
Roy Weber met Cheng Wang, a business consultant and Chinese entrepreneur, at Cheng’s hotel bar in Silicon Valley. Although Roy was slightly familiar with Chinese business practices, he welcomed more advice from a Chinese national. Could Roy transplant Silicon Valley’s model of employee ownership to China, and what would this process entail for a technology startup?
This book describes the full spectrum of equity compensation plans (such as stock options, stock purchase plans, stock grants, restricted stock, phantom stock, and stock appreciation rights) available to private and public companies as well as LLCs. Unlike most books on equity compensation, it focuses on helping decision-makers decide what kinds of equity to choose, and who should get how much and when.
What do veteran ESOP companies have much to teach us about what it takes to sustain employee ownership over the long term?
Increasing numbers of businesses view their employees not as a mere cost but as invaluable contributors for business success. These firms are implementing strategies to fully engage employees at all levels. The Employees Matter report identifies sixteen fast growing entrepreneurial firms that employ employee ownership and engagement strategies which they perceive as directly linked with improved business performance. Eight other notable companies with key lessons to share are included as sidebar profiles.
What can be done to reverse the economic disparity in our nation and restore prosperity for all? This paper lays out a policy reform that will help restore the link between economic growth and the earnings of workers so that the recovery re-establishes a prosperous middle class. The reform encourages firms to develop broad-based incentive compensation systems that link employee earnings to the performance of the firm. This reform would give employees access to the capital-related earnings of their companies comparable to that of the senior executives who run these firms.
Ronald J. Gilbert, President of ESOP Services, Inc,. discusses the leveraged Employee Stock Ownership Plan (ESOP), highlighting the mechanics, advantages, and financing sources. ESOP Services, Inc.’s professionals are experienced in preliminary analysis, plan and financial transaction design, implementation, financing, ESOP termination and litigation support.
As the baby boom approaches retirement, prospects for employee ownership are ramping up…
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.