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…
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.
This paper uses nationally representative linked workplace-employee data from the British 2004 Workplace Employment Relations Survey to examine the operation of shared capitalist forms of pay—profit-sharing and group pay for performance, employee share ownership, and stock options—and their link to productivity.
Apart from the extreme cases that get publicized, are employee stock ownership plans generally good or bad for workers?
This paper analyzes social stratification in patterns of access to shared capitalism programs, the value of shared capitalist plan assets, and access to workplace power and authority in a sample of over 40,000 employees in 14 companies with various forms of shared capitalism in the United States.
This paper examines the effect of a variety of employee stock ownership programs – including ESOPs and broad based stock options – on employees’ holdings of their employers’ stock, their earnings and their wealth.
Between one-third and one-half of employees participate directly in company performance through profit sharing, gain sharing, employee ownership, or stock options.
The National Center for Employee Ownership (NCEO) is a private, nonprofit membership and research organization that serves as the leading source of information on employee stock ownership plans, equity compensation plans such as stock options, and ownership culture.
The authors found that companies with broad-based stock option plans (here, defined as those where most nonmanagement employees receive option grants) had statistically significant higher productivity levels and annual growth rates than public companies in general and their peers.
The first ESOP (employee stock ownership plan) came into being in 1956. This article describes the origin and history of the ESOP and explains why ESOPs will increasingly become the business succession tool of choice for many owners of privately held businesses.
The Beyster Fellowship Symposium brings together academic leaders and new scholars involved with evaluating broad-based employee ownership (EO) and entrepreneurism. The first symposium was held July 2009 in La Jolla, CA. Over 40 academics shared their research findings and participated in an MIT Enterprise Forum panel discussion, which was attended by more than 200 people. The following are videos of Symposium presentations highlighting multiple dimensions of the history, development, and process of employee ownership.
We examine whether options granted to non-executive employees affect the performance of the firm by exploring the link between broad-based option plans, option portfolio implied incentives, and firm operating performance.
The project subjects the existing regulatory regime for employee share ownership plans in Australia – in tax, corporate and labour law – to technical and empirical scrutiny. This research report presents findings from a survey of employee share ownership practice in ASXlisted companies.
This paper explores how share repurchases affect the extant employee compensation contracts and offer a new explanation for the popularity of stock buybacks.
While there have been many studies on whether such ownership improves firm outcomes, this one attempts a larger-scale replication, looking also at effects of worker participation in management-type decisions.
This article provides descriptions of various broad-based employee incentive arrangements.
This collection of papers provides background on a number of employee ownership issues.
This presentation outlines ways to measure success in an employee owned company, how to achieve positive results, and learn from the ‘best companies to work for.’
This presentation discusses the governance structure of employee-owned companies, including trustees, fiduciaries, administrators and plan participants…
CFOs may wonder about the best ways to keep stock-owning employees committed to the company after an IPO. Research by corporate finance professors Peter Roosenboom and Tjalling van der Groot shows a decrease in insiders’ stock ownership from 52.1% before the IPO to 34% afterward, an indication of the powerful financial lure a post-IPO stock sale presents.
This study examines the development of economic democracy in the United States since the 1700s with particular emphasis on the last 30 years. The particular focus is on employee ownership…
This study empirically investigates the value employees place on stock options using information from the option exercise behavior of individuals
This study investigates the impacts on the equity values of private venture-backed firms of the organizational depth to which they grant employee stock options.
The footnote disclosure for eBay, Inc. in 2000 indicates that if the company had accounted for employee stock options under the fair value method, its reported profit of $48 million would have been a loss of $91 million.
It is estimated that more than 20 million employees currently hold stock in their companies through a variety of benefit options, including employee stock ownership plans (ESOPs), broadly granted stock options, or 401(k) plans with heavy concentrations of employer stock.