Every Employee an Owner. Really.
Study after study proves that broad-based ownership, when done right, leads to higher productivity, lower workforce turnover, better recruits, and bigger profits. ‘Done right’ is the key.
Broad-Based Employee Stock Options in the U.S.: Company Performance and Characteristics
This paper analyses data on 490 companies with broad-based stock option plans, matched to data from Compustat in order to compare their characteristics and performance to that of other public companies.
Broad-Based Stock Options: Before and After the Market Downturn
We examine labor productivity in small, medium, and large firms that broadly distribute stock options under starkly different market conditions – during the bull (1995-1997) and bear (2000-2002) stock markets. We find greater labor output in both upward and downward markets in all firm size categories, with the exception of small firms in a declining market, where the productivity is also greater, but the statistical significance of the result is weak.
Executive and Broad-Based Stock Options: Evidence from U.S. Panel Data
This paper examines the productivity effect of the adoption of executive and broad-based stock options. The findings include a positive impact on productivity after the introduction of both executive and broad-based stock options.
Intellectual Capital, Monitoring and Risk: What Predicts the Adoption of Broad-Based Employee Stock Options?
In this paper, we use empirical analysis to analyze company characteristics associated with the adoption and maintenance of broad-based stock option plans. Overall, our results provide support to the claim that higher monitoring costs prompt firms to adopt and maintain employee stock option plans.
An Assessment of Employee Ownership in the United States With Implications for the EU
There is a significant gap in the incidence and development of employee ownership between the European Union (EU) and the US when both sectors are examined.
Sally Jameson: Valuing Stock Options in a Compensation Package
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.
Employee Stock Options at Microsoft Corporation
Students prepare an analysis of Microsoft Corporation’s financial statements and footnotes to understand the impact of its use of stock options.
Taking Stock of Equity Compensation
This article describes several forms of stock purchase plans in Canada and examines participation using the Workplace and Employee Survey. Some U.S. statistics are presented as well.
Are We Out of Options?
They were the currency of the American dream. Now they are worthless paper — a symbol of CEO greed. What went wrong with stock options? Where do companies go from here? Our only option: Visit one of the world’s leading authorities on employee ownership.
In the Company of Owners: The Truth About Stock Options and Why Every Employee Should Have Them
The string of business scandals that recently engulfed America painted a picture of corporate chieftains lining their pockets by cutting corners, cooking the books, and duping gullible investors. In doing so, greedy CEOs have hijacked what could be one of the most important business innovations in decades: stock options for all employees.
Compensation at Level 3 Communications
Level 3’s unique compensation plan rewarded managers for the firm’s performance only if the firm’s stock price movement exceeded that of the market. This design was intended to maximize shareholder value by tying managers’ performance more closely to that of the firm.
Broad-Based Employee Stock Options in US ‘New Economy’ Firms
This paper compares the performance of 229 `New Economy’ firms offering broad-based stock options to that of their non-stock option counterparts. A simple comparison of these firms reveals that the former have higher shareholder returns, Tobin’s q and new knowledge generation.
Incentive Compensation and Employee Ownership
This book takes a broad look at how to use incentives, ranging from stock options to cash bonuses to gainsharing, to motivate and reward employees in dynamic companies that seek to create a more productive ‘ownership’ culture.
Largest Study Yet Shows ESOPs Improve Performance and Employee Benefits
The results of this study showed that ESOP companies perform better in the post-ESOP period than their pre-ESOP performance would have predicted.
Company Stock in Pension Plans: How Costly is it?
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.
Broad-Based Employee Stock Options – A Union-Nonunion Comparison
Until recently, stock options were primarily reserved for senior executives and selected managers in most American corporations. In the last decade or so, however, stock options have become part of the compensation package for an increasing number of rank-and-file employees.
Shared Modes of Compensation and Firm Performance: UK Evidence
This paper examines the use and consequences of shared compensation plans (profit sharing, profit related pay, SAYE schemes and company stock option plans) in a sample of UK workplaces and firms in the 1990s.
Sharing Ownership via Employee Stock Ownership
This paper summarizes the findings from over 50 large-sample empirical studies that have been done on employee ownership and broad-based stock option plans in the past 25 years, covering studies on plan adoption, employee attitudes and behaviours, firm performance, and employee wages and wealth.
Stock Ownership and Work Motivation
Topics include: ownership and motivation, different ways to become an owner, and does ownership make a difference?
‘New Economy’ High-Tech Jobs Look Much Like Old Economy Low-Wage Work
The “new economy” is another name for an old bag of tricks where promise and reality don’t match up. E-workers counting on valuable stock options, a revolutionized workplace, and premier wages and benefits have instead gotten mediocre wages, useless stock options, relentless production pressure, and maximum job insecurity.
Dell Computer Corporation: Share Repurchase Program
Dell Computer Corp. announced a share repurchase program shortly after a significant stock price drop.
Silicon Graphics, Inc.
An equity research analyst is trying to decide how to analyze Silicon Graphics’ financial performance.
Worker Capitalists? Giving Employees an Ownership Stake
This article analyzes the emergent role of employees as a key shareholder group. The authors discusses four major drivers of the trend: tax incentives, decreased vulnerability to takeover, human resources management, and employee motivation.
The New Math of Ownership
In order to solve high-tech’s employee retention problems, Bill Gross, the chairman and founder of Idealab, proposes a radical solution: give all workers a significant equity stake.