Cisco Systems, specializing in network systems that link computers and provide Internet communications, was founded in 1990. Employee compensation is closely tied to company and individual performance through stock ownership and profit-sharing, and performance is focused on customer satisfaction. Cisco has grown mainly by acquisition, always trying to stay ahead of the next best technological … Read More
Less than a year after Sealed Air embarked on a program to improve manufacturing efficiency and product quality, the company borrowed almost 90% of the market value of its common stock and paid it out as a special dividend to shareholders.
How do you share the wealth with your employees without going public? SAIC created an internal stock market that outperforms Wall Street.
Following a successful corporate turnaround and, more recently, a leveraged recapitalization, management of a highly profitable, fast–growing outdoor advertising company must consider alternative ways to harvest cash flow from the company without jeopardizing the turnaround or incurring significant tax liabilities.
Many of the most important practices at this company exist in large part because Wall Street and the banks have applied so much pressure. If the financial community had gone easier on us, we might not be where we are today.
McKay Nursery Co., founded in 1897 in Waterloo, WI, had a longstanding history of commitment to employees. The close-knit organization was a pioneer in the agricultural industry of several employee-friendly policies. But in the early 1980s, as McKay’s owners grew older and senior management neared retirement, the next generation of managers feared for the future of the profitable, debt-free company…
A company nears the end of a long multiyear turnaround and now must consider how to “cash out” so its management can realize a financial return on investment. The privately held company has several options, including a leveraged ESOP and a leveraged recapitalization.
This study compares the corporate performance in 1990/91 of two groups of public companies: those in which employees owned more than 5% of the company’s stock, and all others.
William Apfelbaum, president and CEO of Transportation Displays, Inc., must restructure both the company’s method of doing business and its liabilities to keep it from bankruptcy. The value he hopes to receive from the reorganized company will be an important issue in the restructuring negotiations with creditors.
Transportation Displays, Inc. has gone through a series of restructurings. This case describes the last few stages, which substantially reduced debt and increased the ownership of management.
A long-time community development worker creates hundreds of jobs for low-income women and minorities by forming a for-profit home health care cooperative, Cooperative Home Care Associates…
There are a number of ways to have workers’ remuneration linked more readily with firms’ commercial performance. One is to link wages to profits by using cash-based profit sharing (where workers are made cash payments which vary with employer’s profitability). A second is to have workers paid partly in their firms’ own shares. A third, and more extreme alternative, is producer co-operatives where workers participate in profits, ownership and decision-making. In this article we examine both the theoretical and empirical evidence in support of such schemes.
Mr. William Cooper Procter’s successful plan under which hundreds of employees that make less than $1500 a year in wages have acquired stock that is worth thousands of dollars.