Here are some thought-provoking information bytes about the power of employee ownership!

• An estimated 17,000 U.S. companies currently share ownership with a broad base of their employees.
• More than 15 million U.S. workers own shares in the company where they work.
• Numerous studies have shown that employee ownership, when combined with participative management techniques, has a positive influence on corporate productivity.
• Employee ownership can be found in both large and small companies:
  • Employees own at least 5% of the stock in more than 1,000 publicly traded companies;
  • Employees own at least 10% of the stock in one-quarter of the Fortune 500 companies;
  • 90% of employee ownership plans are found in private companies;
  • Employees typically own 5-15% of publicly traded companies and 20-40% of privately-held firms;
  • Employees own a majority stake in several thousand companies.

• Stock compensation strategies are particularly widespread among technology based firms and emerging growth companies but employee ownership can be found in virtually every industry.
• Employee stock ownership can be found in a variety of forms including:
  • ESOPs (Employee Stock Ownership Plans)
  • Stock Options
  • Stock Purchase Plans
  • Stock Bonuses
  • In 401(k), profit sharing and other benefit plans
• The most common uses of employee ownership are to:
• Provide incentive compensation to attract, retain and motivate employees;
• Increase productivity by giving employees a financial stake in company growth;
• Restructure and/or enhance employee benefits;
• Facilitate business succession planning for private companies;
• Structure a partial or complete employee buyout, often to purchase shares of departing principals;
• Defend against hostile takeovers;
• Facilitate privatization transactions (much more prominent internationally than in the United States).
• Many U.S. multi-national companies are now implementing global stock compensation plans for their international employees.
• Since 1974 Congress has passed over 20 pieces of legislation promoting employee ownership. Congressional support of employee ownership is based on two general concepts:
• Broadened ownership of capital assets is good for the economy;
• Promoting improved productivity by giving workers a financial stake in business success.

Back

Print this page