While all kinds of businesses become employee stock ownership plan (ESOP) companies, there is a large percentage of engineering firms that have chosen the ESOP structure. Why so?
J. Doug Pruitt talks about the Sundt ESOP program.
This presentation discusses five myths surrounding employee ownership…
Developed in 1989, these slides are placed on CLEO for researchers to use to ascertain some of the perceived motivations behind the types of transactions that were being discussed and closed during this period of ESOP history when many of the big, union-oriented ESOPs were being formed.
This case study focuses on Wawa, the convenience store, gas station and restaurant company. Founded in 1803, Wawa morphed over time from an iron foundry to a textile mill, to a dairy farm, dairy delivery business, grocery store, then convenience store. Dark clouds descended with the 2008 financial crisis. As competitors converged on Wawa, management … Read More
With a growing prominence of sophisticated econometric research in a much-expanded field of New Economics of Participation (NEP), it is of particular value to learn about real-world examples of participatory and labor-managed firms in the advanced market economies through extensive case studies. In this volume of Advances in the Economic Analysis of Participatory and Labor-Managed Firms, … Read More
This case study provides an in-depth look at a company’s board of directors’ composition-related decision-making in the context of broad-based participatory processes and the desire to maintain a profitable and fully employee-owned and governed enterprise.
This qualitative research project focuses on a compare and contrast between acquisitions by ESOP and Non-ESOP organizations from a consultant’s perspective to obtain a third party viewpoint. Also discussed is a review of the academic literature on Mergers and Acquisitions, the reasons for failures, and possible solutions for successful acquisitions. An ESOP is an Employee … Read More
Led by CEO Zhang Ruimin, Haier in 30 years has gone from a money-losing, rigid hierarchy, state-owned, local firm to a profitable, flexible structure, collectively-owned, multinational enterprise. This transformation has been done in well-defined steps. In 2012, it was moving toward operating as a platform for microenterprises. The platform was to be open to both … Read More
The primary aim of this course is to provide an understanding of how organizational systems and individuals interact. In specific, there is a focus on employee ownership structures and business models that contribute to shared prosperity because they are more effective than alternative models.
In December, my family finalized a very personal, and we hope impactful, gift titled, J.R. Beyster Papers, to UCSD Library’s Special Collections. After about one year of pre-processing, the collection includes more than 200 boxes of documents covering more than 50 years of hundreds of advanced scientific innovations, small- to billion-dollar business experiments, and discontinued to transformational government program development.
In 1993, Mack Hembree, a successful real estate businessman, was invited to invest in opening a business that he had some commonly held reservations about. The business was a pawn shop… By fostering and aligning employee satisfaction, collaboration, and commitment at every level, Mack has developed an ownership culture that differentiates Gems N’ Loans from its peers and has been instrumental in the company’s success.
Profit-sharing plans are one way to address the global issues of income inequality and uneven wealth distribution while increasing employee engagement. One company, the Chinese telecom Huawei, has a successful employee stock ownership plan (ESOP) that demonstrates such incentives can be good for both employees and the business.
To survive, Atlas changed from an external to an internal growth strategy. The smoothness of the transition could at least be partially attributed to a set of internal strategies that were unusual for a commodity/cost-driven industry. They included democratic governance and employee ownership…
Two of the most common industries to have established ESOPs are construction and manufacturing, combining to make up 35 percent of the 1,600 companies represented by the ESOP Association…
Ultimately, the success of your venture will be determined not by your efforts alone but by the performance of the cast of people — employees, partners, or associates — that you assemble. So, if there is a strategy that can help you get more out of the people on whom you depend and also boost your organizational horsepower, you owe it to yourself to take a serious look. A policy of sharing equity with employees that is designed and used wisely can be just that strategy.
William H. (Bill) Carris set a deliberate purposeful course for the whole system change that he deeply desired for his employees. The Carris transformation, innovative in its own right, provides examples of change from being traditionally owned, managed and governed to having shared ownership, participatory management and shared governance by the whole…
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.
Course Description: The corporation is a controversial institution. It is the central institution that introduces us to the concept of capitalism. Among its virtues are the provision of jobs for employees and wealth for owners.
A tale of entrepreneurship – and a leading holiday decoration company becomes employee owned…
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…
The idea of workers owning the businesses where they work is not new. In America’s early years, Washington, Adams, Jefferson, and Madison believed that the best economic plan for the Republic was for citizens to have some ownership stake in the land, which was the main form of productive capital. This book traces the development … Read More
You just received the dreaded call from your friendly 401(k) third-party administrator – your average deferral percentage (ADP) test is failing…again! Some of your highly compensated employees will be disappointed to learn that money they deferred will be returned to them and is taxable.
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 many ways the persistent top-down command and control theme that supports established leadership thought and practice prevents organizations from fully tapping into their human resources, in turn limiting their flexibility to meet the challenges of increasingly dynamic, complex, and competitive environments. Shared Entrepreneurship replaces the top-down approaches of the past with a new framework that draws strengths and innovation from collaboration and sharing.