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
The field of broad-based employee ownership within corporations is a specific application of the foundational topic of property ownership. It is situated at the intersection of a broad range of scholarly disciplines including economics, law, finance and management. Each discipline contributes vocabulary and distinctions describing this field. That broad spectrum of disciplinary inquiry is a … 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
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
This paper analyzes participation decisions in employee stock purchase plans. These plans allow employees to buy company stock at a discount from the market price and resell it immediately for a sure profit. Although an average employee stands to gain $3,079 annually, only 30% of individuals take advantage of this risk-free opportunity. Participation is more … Read More
Employee ownership is a big, bold idea, a market tested concept that is capable of transforming the American economy and rebuilding the American dream. This white paper includes policy proposals for turning more workers into owners.
As KKR, a private equity firm, prepared to take Gardner-Denver, one of its portfolio companies, public in mid-2017, a discussion arose on the Gardner-Denver board about the implications of granting approximately $110 million in equity to its global employee base as part of its innovative “broad-based employee ownership program.” KKR (formerly known as Kohlberg Kravis … Read More
Many companies we encounter have a pretty good idea of what kind of employee ownership plan they want to use, usually based on specific needs and goals. However, sometimes they might be better served by another kind of stock plan. Others say they’d like to have an employee ownership plan, but they’re not sure what … 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
Estimated Number of Plans and Employees; Value of Plan Assets.
We examine the impact of the cultural norm of uncertainty avoidance on employee stock option (ESO) exercise behavior using proprietary data from a multinational firm. We find that employees from countries with higher levels of uncertainty avoidance exercise their stock options earlier. These findings lend support to a maintained assumption in the ESO literature that … Read More
Purpose The purpose of this paper is to review the historical background for broad-based ownership in the USA, the development of forms of employee ownership and profit sharing in the USA, the research literature on employee ownership and profit sharing and related employee participation, the development of policy and options for new policies. Design/methodology/approach It … Read More
There are now over 25 million employees who own stock in their companies through employee stock ownership plans (ESOPs), broadly granted stock options, or 401(k) plans with heavy concentrations of employer stock.
Why a low-cost program to educate employees about company ownership could produce huge financial benefits for the country.
This article analyses the linkages among group incentive methods of compensation (broad‐based employee ownership, profit sharing and stock options), labour practices, worker assessments of workplace culture, turnover and firm performance in firms that applied to the ‘100 Best Companies to Work For in America’ competition from 2005 to 2007. Although employers with good labour practices … Read More
This two-page Business Action Guide describes the Wikoff Color’s unique formula for employee ownership.
This report has two goals. The first goal is to answer questions about undue risk in order to prevent companies from adopting employee ownership structures that endanger workers and jeopardize the collective benefits of broad-based sharing. The second goal is to help create widespread support for policies that would encourage greater adoption of beneficial employee … Read More
This Critical Mass Radio Show discusses why, when and how business owners should choose the ESOP path as the correct succession strategy…
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 case study describes Huawei, a Chinese telecommunications equipment company, which heavily utilizes ESOP ownership, and applies Huawei’s results to describe ESOPs as a powerful tool for achieving corporate efficiency and growth.
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.
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.
Many workers view stock options as a way to get a piece of their company’s action and share a stake in its overall performance. But what’s in it for employers?
Learn more about a unique engineering company that has been providing critical infrastructure services throughout southern California since 1986…
Elizabeth had a number of concerns related to the heavy use of employee stock options as incentives and employee compensation in the high-technology sector…