Profit Sharing/Stock Options

Projecting the Long-Term Consequences of ESOP vs. Co-op Conversion of a Firm on Employee Benefits and Company Cash

Author(s): 
Jaques Kaswan
Year: 
1992
This report provides a detailed examination of the benefits received by departing employees of a company converted to 100% employee ownership either as an ESOP or a Co-op over a 15 year period. It also studies the net cash retained by the ESOP or Co-op firm over the same time-span. It discusss the some theoretical and practical implications related to the two forms of employee ownership.

Inclusive Capitalism for the American Workforce: Reaping the Rewards of Economic Growth through Broad-based Employee Ownership and Profit Sharing

Author(s): 
Richard Freeman, Joseph Blasi, Douglas Kruse
Year: 
2011
This proposal examines the problem of economic disparity facing the United States, and presents an option for reform based on employee ownership and incentive-based compensation. It also proposes a change in tax policy accordingly and examines the impact of the proposal on a few Fortune 500 firms.

Employee-Ownership Briefing Paper 1.3

Author(s): 
Ownership Associates, Inc.
Year: 
2003
In the 28 years since Congress established Employee Stock Ownership Plans (ESOPs), over 10,000 U.S. companies have adopted and maintained ESOPs—dozens of studies have evaluated the effects of ESOP on company performance. After reviewing the research literature, Dr. Douglas Kruse concluded: “25 years of research shows that employee ownership often leads to higher-performing workplaces and better compensation and work lives for employees.” Study 1 (below) indicates that this “ownership effect” averages 2 to 3% per year on a variety of measures.

Employee-Ownership Briefing Paper 7.2

Author(s): 
Ownership Associates, Inc.
Year: 
2003
One key rationale for the creation of ESOP law in 1974 was to share wealth with the workers who helped create wealth. Today, many companies use the wealth sharing aspect of their ESOPs as an effective retention and recruitment tool. But just how effective a means of distributing wealth are ESOPs? Two studies, one conducted in Washington State and one in Massachusetts, have looked at the wealth consequences of ESOPs.
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