This paper proposes that impact investors and other capital providers could catalyze employee ownership buyouts. Impact capital could become the lever used to redirect wealth into the hands of working Americans, creating a more just and equitable economy that is more resilient against future shocks. Investments in employee ownership buyouts could offer attractive midrange returns, … Read More
Using unique data on employee stock purchase plans (ESPPs), we examine the influence of networks on investment decisions. Comparing employees within a firm during the same election window with metro area fixed effects, we find that the choices of coworkers in the firm’s ESPP exert a significant influence on employees’ own decisions to participate and … Read More
The aim of this paper is to compute and describe the conditions of an optimal employee ownership contract between an employer and an ambiguity‐averse employee. We then introduce ambiguity aversion in the baseline model of Aubert et al. (2014) using the multiple prior preferences of Gilboa and Schmeidler (1989) and its extension proposed by Maccheroni … Read More
The benefits of employee ownership as a strategy for achieving broad-based prosperity are well documented—but the growing field of impact investing has yet to fully recognize the key opportunity employee ownership presents for tackling economic inequality. In this Fifty by Fifty research brief, Mary Ann Beyster explores the existing landscape of employee ownership opportunities for … Read More
Employee ownership is often used not only as a reward management tool but also as an entrenchment mechanism. The literature suggests that good managers use employee ownership as a reward management tool, whereas bad managers implement it for entrenchment, thus suggesting the existence of an equilibrium level of employee ownership. The contributions of this paper … Read More
This Review looks at ‘short-termism’ within British business: the pressure to focus on short-term results to the possible detriment of the long-term health of a company, or even a whole industry. The investigation confirmed that short-termism constrains the ambition of UK business, holding back its development and inhibiting economic growth…
We investigate which factors influence 44,649 employees’ decision to invest in a top retail banking group in France. We have two objectives: (i) to explore factors associated with the amount invested in the plan, and (ii) to explore whether these factors have same associations with the probability of investing more than the incentive pay i.e. … Read More
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.
We examine how employee ownership is used to solve the agency problem between institutional investment management firms and employees.
Should Wachovia Bank and Trust lend the ESOP of Starrett the money to purchase shares? The required tasks involve a standard credit analysis and the valuation of Starrett’s shares.
The Employee Ownership Video Collection Teaching Addendum presented by the Foundation for Enterprise Development is divided into four sections, Teaching in Entrepreneurship Programs, the History of Broad-Based Ownership, Innovation and High-Tech, and Money and People. This video outline is designed to explore the ways to incorporate employee ownership in your class curriculum, learn about the early beginnings of employee ownership and how it has evolved especially in the high-tech fields, and to discover the culture of participation embraced by employee-owned businesses.
Fair trade and beverage pioneer, Equal Exchange, has teamed up with socially progressive bank, Wainwright Bank, to raise capital, protect its independence, and create a new financial product for investors.
The authors investigate how worker-owned and capitalist enterprises differ with respect to wages, employment, and capital in Italy, the market economy with the greatest incidence of worker-owned and worker-managed firms.
Provides a detailed slide presentation related to the history and experience os employee ownership indices and mutual funds in the United States.
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.
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 high-profile collapse of Enron has focused attention on just how much employees stand to lose when they invest retirement savings in company stock.
This analysis examines recent trends in stock ownership and explains the reasons for the dramatic increase in stock ownership among a broader and increasingly diverse number of Americans.
Dell Computer Corp. announced a share repurchase program shortly after a significant stock price drop.
Explores the raising of capital to finance the growth of a spinoff business from Corbin-Pacific, a leader in motorcycle accessories.
This paper explores employee ownership as a financial investment rather than a mechanism of control. Viewed from such a perspective, relations among employee ownership, satisfaction, and desired influence are more complex than supposed.
This essay, devoted to explaining the financed-capitalist plan, is an attempt to advance our practical thinking about capitalism. It does not add anything except evidence of feasibility to the theory of capitalism as outlined in our earlier book.
Mr. William Cooper Procter’s successful plan under which hundreds of employees that make less than $1500 a year in wages have acquired stock that is worth thousands of dollars.