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Author Mark Connor, MD, Sapphire Date published September 2, 2024 Categories (https://www.accountancyage.com/category/uncategorized/) Uncategorized Since transitioning to employee ownership in 2021, we at Sapphire, a contracting and accounting firm, have witnessed [...]

Various studies are conducted to explain the construct of collective psychological ownership as observed in the work and the organizational settings. The different work-related attitudinal and stress-related outcomes emerging out of this construct are also analyzed.

A hypothesis to prove the influence of socialization strategies on new employee involvement and turnover is presented.

It may not be a death knell for stock options, but it's enough to place a frantic call for a medic. Microsoft--software giant, workplace of the world's richest man, the [...]

Some 1,425 employees were shocked upon learning that Champion International Corp has placed its paper mill and factory in Canton and Waynesville, NC, as well as other out-of-state factories, for sale. Deciding to take the matter into their own hands, Champion's local employees, led by the Smoky Mountain Local 507 of the Paper, Allied-Industrial, Chemical Energy Workers International Union, announced their plan of buying the firm themselves. To help them finance the purchase, the employees took KPS Special Situations Fund LP as partner, which will hold majority ownership but will still allow them to operate the union under prevailing terms.

As co-founder of Kohlberg Kravis Roberts, the firm that revolutionized the leveraged buyout world, George Roberts has learned a thing or two about valuing a corporation. One of his most important rules: the board of directors can be crucial to success - if you pay them to think like owners. (Reprinted by permission of the publisher.), As co-founder of Kohlberg Kravis Roberts, the firm that revolutionized the leveraged buyout world, George Roberts has learned a thing or two about valuing a corporation. One of his most [...]

This paper explores the impact of employee ownership on employee attitudes, using attitudinal data obtained from four UK bus companies which had adopted the ESOP form of employee share ownership. After reviewing the recent UK literature, the paper highlights the findings from US literature that a `sense of ownership' is an important intervening variable between actual ownership and attitudinal change, and that opportunities for participation in decision- making are more important than ownership per se in generating feelings of ownership. The paper incorporates these possibilities in using a two-stage ordered probit model to explore the relationships between ownership and attitudinal outcomes. The findings support intrinsic and instrumental models of ownership, and indicate that feelings of ownership are significantly associated with higher levels of commitment and satisfaction., Attitudinal data from four UK bus companies is used to examine the impact of employee ownership on employee attitudes. Findings from US literature that a sense of ownership is an important intervening variable between actual ownership and attitudinal change, are also examined. A two-stage ordered probit model is used to examine the links between ownership and attitudinal outcomes, and the finding support intrinsic models of ownership, suggesting that feelings of ownership are linked to higher levels of commitment and satisfaction.

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. The results of the analysis, which looks at profitability, productivity, and compensation, are consistent with neither negative nor highly positive views of employee ownership, but where differences are found, they are favorable to companies with employee ownership, especially among companies of small size. The circumstances in which employee ownership was used - specifically, whether it was part of a wage/benefit concession package and whether it was involved in a takeover threat - do not appear to have had a significant effect on the 1990 performance levels or 1980-90 performance growth of the firms. Although the authors caution that the data do not permit clear tests of causality, these results are broadly consistent with those of past studies., Employee ownership received substantial attention in Western economies in the 1970s and 1980s. During that time, employee ownership of stock in U.S. companies became widespread. An estimated 10.8 million employees [...]

Managerial shareholding is a topic of persistent interest to economists because of its principal-agent and signaling implications. The theory of ownership structure formalized by Jensen and Meckling (1976) explicitly recognizes [...]

Can employee ownership cure America's workplace ills? Perhaps. But some observers fear that corporate resistance has relegated the ownership philosophy to B-team status. Roger Terry has a bold idea for [...]

A case study of Algoma Steel in Sault Ste Marie, Ontario, Canada, has been used in recent research to give an insight into various issues relating to the growing number of employee buyouts currently taking place. The experiences at this company, where what has been described as a 'workplace revolution' took place, shed light in particular on the most successful approach to negotiating an employee buyout. As in most cases, the main driving force behind the buyout was the desire to save jobs.

Q: We are an employer in Hong Kong, and we may soon be acquired by another company by way of an asset purchase. We are unsure of the effect that [...]

* More and more companies are acting to increase stock ownership among their employees. In the early 1960s, only 111 New York Stock Exchange companies had plans that subsidized stock [...]

The totalitarian structure of most corporations decreases productivity, inhibits initiative, and encourages bureaucracy. Corporations can solve the problems caused by totalitarianism by implementing some type of ownership-sharing plan that gives employees a greater stake in the corporation's success. Corporations that adopt such a plan will find that employees are more productive if they believe they will benefit personally. Board members and chief executive officers must change the way in which they view their organizations before an ownership-sharing plan can be implemented. Board members should determine the return on equity they wish to receive and develop a plan to divide the surplus among all of the employees in the corporation, thereby increasing employee loyalty., DE-STALINIZING THE CORPORATION The banner headline reads: 'Production Up 15 Percent Over 1988.' Elsewhere on the page: 'Vishinsky Elevated to Finance Post.' And: 'Honors Awarded to 25-Year Veterans.' Is this [...]

It's no fun being up against the wall, which is where Harry Featherstone found himself in the autumn of 1985. He had recently taken command of The Will-Burt Co., a [...]

The decision by a private company to offer to its employees is a complex issue which requires establishing a value for the stock so it can be sold to employees or bought back at a later date. The considerations applicable to the decision include analyzing widespread information on the firm's financial situation, ownership, and value; determining how stockholder dilution, charges to earnings, and long-term cash obligations will be incurred; and determining how interest by non-owners in purchasing stock will increase. The methods for determining the value of stock include using book value and using an outside appraiser. The methods used by outside appraisers include cash flow, formula value, and appraised value.

The participation of unionized employees in the ownership and management of companies employing them presents legal and ethical problems. Important legal questions are grouped in three areas: possible conflicts of of interest in representing employees as employees and as owners and members of boards of directors; conflicts of interest regarding union and employee interest in protecting employee benefits as opposed to control of employment issues; and possible conflicts with federal anti-trust laws. Unionized employees who are also owners of the company they work for often hire their own managers, confusing relationships. They are also confronted with a conflict between the rights of workers and the interests of owners. Unionized employees who are also board members may break anti-trust or other laws if they accept compensation for their services, or if they serve on the boards of competing companies.

The two fundamental principles that guide public companies emphasize the importance of strengthening shareholder value and empowerment of the company's workforce. The most logical step to achieving these ideal conditions would be to open up the company to employee ownership through stock options. This would ensure that both the stockholders and the management team have aligned motives and objectives for the company. An example of such a corporate ownership scheme is Scotland-based company, John Menzies. This firm recognizes four classes of stockholders, namely, the founder's family, institutional shareholders, employees and the public. The ownership structure was such that all the majority holders have a long-term stake in the company. Shareholders who are motivated by short-term profit are liabilities and not assets to public companies.

Employee share ownership has merit. But that does not justify further government incentives IN AN effort to rebuild New England's cod industry after the war of independence, George Washington signed [...]

Mr. Kaback's thesis that paying directors in stock may impede improved corporate governance, and, therefore, cash-based compensation is preferable, is fatally flawed in two major respects. First of all, it [...]

Connor Formed Metal Products became a company of business people by merging employee stock ownership with participatory management. Under its employee stock ownership plan, employees own 42% of the company. Employee involvement programs, on the other hand, engaged employees in identifying ways to enhance or speed up production processes., Few companies today view managers as people who receive problems, make decisions and pass down solutions to the workforce. Quite simply, the computer, revolution has meant that companies must make [...]

Employee stock ownership plans (ESOP) have helped establish evolutionary corporate management, empowerment of employees and loyalty in the workforce. In spite of the plans' advantages, there is rising criticism that they are not effective tools in strengthening a company against adverse market forces. With employee initiatives toward increased participation in management and against wage and benefit reductions, companies may benefit from an assessment of motives for offering ESOP and adherence to complete disclosure of information.

Byline: Vicki M. Young NEW YORK -- While chapter one in the J.C. Penney turnaround story was about getting the merchandising, operations and numbers right, chapter two is going to [...]

There are a variety of incentives that businesses use to attract, retain, reward and motivate good employees. As a recent Atlanta Journal Constitution article pointed out, many companies share the [...]

Are business-to-business transactions the future of vouchers? The use of vouchers as business or motivational tools has gone through a slump over the past two years. The government's new income [...]

The John Lewis Partnership was built on the caring, sharing principles of the co-operatives of old. So why did its partners get so angry, asks Paul Barker When old Sam [...]

On Friday 1 July, employee-owned businesses will be celebrating Employee Ownership Day 2016. As well as Parfetts, the likes of Waitrose and Wilkin & Sons (Tiptree) will be proudly taking [...]