<span>This paper examines the returns of private firms that offer shares to their rank-and-file employees through Employee Stock Ownership Plans (ESOPs), a type
Levels of Employee Share Ownership and the Performance of Listed Companies in Europe
Abstract We investigate the effects of employee share ownership (ESO) on three alternative measures of firm performance in a panel of 1,115 companies from the five largest European economies. The results show that firms with ESO enjoy significantly higher levels of capital market performance and of accounting performance than firms without ESO; however, the marginal effects of ESO are declining with increasing ESO levels. ESO does not have a clear effect on productivity. These findings hold for all countries except Spain. Variations in ESO levels within firms over time exert few performance effects.
Employee financial participation and corporate social and environmental performance: Evidence from European panel data
Abstract Compensation and benefit practices are mainly considered as instruments to align employee behaviour to an organization's strategic goals, such as economic outcomes. Going beyond this economic focus, this study examines whether and how employee financial participation, may drive corporate sustainability performance (CSP; i.e. social and environmental performance). We investigate the relationship between employee share ownership, stock option and profit‐sharing plans, on the one hand, and CSP, on the other hand. In addition, we investigate the relationship between narrow‐based employee share ownership plans (only eligible for top management) and broad‐based employee share ownership plans (all employees eligible), on the one side, and CSP, on the other side. Using a unique European panel dataset, the results indicate that companies with (broad‐based) employee share ownership plans portray higher CSP, while companies with profit‐sharing plans exhibit lower CSP when there is no share ownership plan present. Also, the positive effect of broad‐based employee share ownership plans on CSP is magnified when the employees own a larger stake in the company. The results indicate that employee share ownership increases stakeholder orientation, strengthening the mutual interests of the organization and employees to long‐term investments in terms of CSP, at the same time broadening their orientation to long‐term external stakeholders’ interests.
WSJ News Exclusive | Private-Equity Giants Back New Nonprofit Promoting Employee Ownership
More than 60 groups, including banks and pension funds, have also signed on to support Ownership Works, which aims to promote broad-based stock ownership as a means of curbing income inequality.
Overcoming Barriers to Employee Ownership: Insights From Small and Medium-Sized Businesses
This research investigates the limited adoption of employee stock ownership plans (ESOPs) among small-to-medium sized businesses (SMBs) in the U.S. Through interviews with 30 SMB owners across various industries, we identify the key barriers to ESOP adoption as lack of time, money, and skills on the part of the owners. In doing so, the study suggests that a “shared ownership light” model, which involves sharing profits, information, and decision-making opportunities with employees, appears more feasible for SMBs than ESOPs. For SMBs that are interested in ESOP adoption, our research suggests that organizations providing employee ownership services could better assist SMBs by offering templatized models and best practices for profit-sharing plans, open-book management, and structured employee participation. The paper aims to broaden the discussion around shared ownership by considering a spectrum of options that have the potential to increase both value creation by and value-sharing among employees.
Exclusive | Blackstone to Grant Equity to Most Employees in Future U.S. Buyouts
The private-equity firm’s plan is part of a broader movement in the buyout industry to expand ownership beyond management ranks.
Launching a European Employee Stock Ownership - ProQuest
Explore millions of resources from scholarly journals, books, newspapers, videos and more, on the ProQuest Platform.
When Does Worker Ownership Work? ESOPs, Law Firms, Codetermination, and Economic Democracy
Private Equity Is Starting to Share With Workers, Without Taking a Financial Hit (Published 2024)
The buyout giant KKR pioneered a model of granting ownership stakes to employees at portfolio companies. Now it wants the approach to spread.
Democratic Ownership Funds: Creating Shared Wealth and Power
Recent decades have seen a rapid and little-discussed transformation in corporate ownership structure, with vital consequences for company behaviour and inequality.
Database of Alternative Ownership Enterprise Investment Funds And Vehicles
Transform Finance is pleased to release a new database for investors interested in Alternative Ownership Enterprises (AOEs). Alternative Ownership Enterprises (AOEs) are firms that significantly shift economic value and decision-making power toward the non-investor stakeholders they impact, such as workers, producers, consumers, community members, or even a non-financial purpose.
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The PEPPER V Report - Kelso Institute Europe
This Report provides an overview of the development of employee financial participation, i.e., employee share ownership and profit sharing, across the EU-27, the United Kingdom, and the United States of America as of January 2024. Against the background of the policy development of the past 35 years, it highlights the growth of financial participation over the last decade using the most recent cross-country data available, i.e., the 2021 CRANET Survey, the 2019 European Company Survey and the 2015 European Working Conditions Survey, which also show its potential positive impact on employment and productivity.
The sell-off of British businesses like ARM must stop | John Mills
As foreign investors buy up UK companies such as the technology firm ARM Holdings, we lose the profits and skills Britain so desperately needs
Lunar Logic Blog | Open Salaries: Outcomes (Looking back after 20 months)
What happens when you give employees control of their own salaries? A lot of great things, actually.
The Shareholder Value Myth
Shareholder primacy theory is suffering a crisis of confidence. In The Shareholder Value Myth: How Putting Shareholders First Harms Investors, Corporations, and
Worker Co-Ops Have a Role to Play in Socialist Strategy
Establishing worker-owned firms is no substitute for building a strong labor movement and a socialist presence within the state. But worker co-ops can play a key part in a broader socialist strategy, by making tangible the material benefits of cooperation.
