Employee Ownership and Performance
Author: Johnson, Jennifer
Source: The Aspen Institute Center for Business Education
Year: 2011
Abstract:
Companies choose employee ownership models for many reasons, including better governance, succession planning, cultural, or other reasons, but in all cases one of the critical questions to ask is "How is employee ownership related to performance?" This Reading Collection includes a number of cases and related material on that relationship. Are employees with an equity stake in the firm more productive, more innovative, more concerned about customer relations and other variables that contribute to overall success?
Material in this Collection uses examples from a range of industries to discuss both the challenges and benefits of employee ownership. ESOPs, stock ownership, and other incentive plans can all be used as ways to channel employee efforts into greater corporate productivity. One key to boosting corporate performance through employee ownership is to improve employee involvement in company decisions. This Reading Collection includes examples of companies which have done just that with positive results.
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