I view corporate governance as a process of designing and implementing various implicit and explicit contracts among capital providers, corporate managers, workers, and other important stakeholders. In my talk today, I will expand the scope of the typical shareholder value focus to consider the design and implementation of contracts with other stakeholders, particularly employees and organized labor.
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 report considers the objectives and current practice in this area and notes that employee ownership levels tend to be lower for unlisted entities than for listed entities. It also examines the regulatory obstacles to such ownership and makes recommendations for reform to facilitate employee ownership in this area.
This paper summarizes new evidence from the “Shared Capitalism” Project on the extent to which workers’ earnings depend on the performance of their firm or work group in the US and advanced European countries and on the impact of sharing arrangements on economic behavior.
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.
How employee share ownership plans affect employee compensation and shareholder value depends on the size.
Employee Financial Participation: An International Survey provides an overview of key international trends in employee ownership, pension reform, equity compensation, privatization, and employee financial participation in over 30 countries.
Staff members at Vasey Commercial Heating & Air Conditioning in Zionsville are company owners as part of an employee stock ownership plan.
This article provides descriptions of various broad-based employee incentive arrangements.
Oxera was commissioned by HM Revenue & Customs (formerly the Inland Revenue) to examine the impact of tax-advantaged share schemes on UK company performance (whereby companies reward their employees by granting them shares, or share options, as part of their remuneration package).
The U.S. labor market is the most laissez faire of any developed nation, with a weak social safety net and little government regulation compared to Europe or Japan.
This paper provides an overview of existing data on employee share ownership (ESO) in Australia. It is concerned with broad-based employee share ownership plans.
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.
This report looks at the current situation in relation to employee financial participation (EFP) and its recent developments in the new Member States (NMS) of the EU: Bulgaria, Cyprus, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Romania, Slovakia and Slovenia.
This study seeks to ascertain the impact of employee stock ownership plans (ESOPs) on earnings management.
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.
In the relationship between unions and employee share ownership, neither threatened the other, and their combination led to benefits for employees, particularly where unionized employees were majority owners.
Extending ownership to all employees, involving all in managing the business and tying the compensation to profits brought a renaissance to Alloy Engineering twenty years ago.
This study seeks to open up an examination of the reasons for implementing an ESO scheme at the enterprise level in Australia, through two interview-based case studies conducted at National Australia Bank Ltd and Palm Springs Ltd.
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
ESOPs are part of a broader approach to expanded capital ownership, broader prosperity, and economic justice known as binary economics. Binary economics was first advanced by Louis Kelso, who is also widely known as the inventor of the ESOP.
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.
Why is this employee benefit plan so popular in the engineering industry?
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.
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.