49:
647:, which may be at no upfront cost to the employee, enable the employee to purchase stock, which may be at a discount, or grant employees stock options. Shares allocated to employees may have a holding period before the employee takes ownership of the shares (known as vesting). The vesting of shares and the exercise of a stock option may be subject to individual or business performance conditions.
597:
have all employee plans that provide employees with $ 1,000 worth of shares on a tax free basis. Such plans may be selective or all-employee plans. Selective plans are typically only made available to senior executives. All-employee plans offer participation to all employees (subject to certain qualifying conditions such as a minimum length of service).
651:
through plans in which participation is offered to all employees. The tax rules for employee share ownership vary widely from country to country. Only a few, most notably the U.S., the UK, and
Ireland have significant tax laws to encourage broad-based employee share ownership. For example, in the U.S. there are specific rules for
876:, which deregulated and then privatised bus services. Councils seeking to protect workers ensured that employees accessed shares as privatisation took place, but employee owners soon lost their shares as they were bought up and bus companies were taken over. The disappearance of stock plans was dramatic.
844:
are registered as self-employed and are not employees. This further differentiates this type of co-operative ownership (in which self-employed owner-members each have one voting share, or shares are controlled by a co-operative legal entity) from employee ownership (where ownership is typically held
596:
in that company (or in the parent company of a group of companies). US employees typically acquire shares through a share option plan. In the UK, Employee Share
Purchase Plans are common, wherein deductions are made from an employee's salary to purchase shares over time. In Australia it is common to
835:
owned and self-managed by its workers. It is a type of employee owned company that operates according to the international values of co-operation and adheres to an additional code, beyond the core international principles, focused on democracy and participation in the workplace. The most celebrated
747:
Employee ownership requires employees to own a significant and meaningful stake in their company. The size of the shareholding must be significant. This is accepted as meaning where 25 percent or more of the ownership of the company is broadly held by all or most employees (or on their behalf by a
650:
Various types of employee stock ownership plans are common in most industrial and some developing countries. Executive plans are designed to recruit and reward senior or key employees. In the U.S. and the UK there is a widespread practice of sharing this kind of ownership broadly with employees
679:
enable employees to put aside after-tax pay over some period of time (typically 6–12 months) then use the accumulated funds to buy shares at up to a 15% discount at either the price at the time of purchase or the time when they started putting aside the money, whichever is lower. In the U.K.,
701:
give employees the right to buy a number of shares at a price fixed at grant for a defined number of years into the future. Options, and all the plans listed below, can be given to any employee under whatever rules the company creates, with limited exceptions in various countries.
674:
Direct purchase plans simply allow employees to buy shares in the company with their own money. In several countries, there are special tax-qualified plans that allow employees to buy stock either at a discount or with matching shares from the company. For instance, in the U.S.,
627:
and culture after the founders have left. Generally, the most senior employees own a majority stake and represent the leading voice in the company that employs them. They may be required to sell back the shares upon leaving the company.
713:
and its close relative restricted stock units give employees the right to acquire or receive shares, by gift or purchase, once certain restrictions, such as working a certain number of years or meeting a performance target, are met.
890:
In the United States, there is a widespread practice of employee stock ownership. It began with industrial companies and today is particularly common in the technology sector but also companies in other industries, such as
783:
Employee ownership can be seen as a business model in its own right, in contrast to employee share ownership which may only provide selected employees with shares in their company and an insignificant overall shareholding.
1082:
845:
as a block of shares on behalf of employees using an employee ownership trust, or company rules embed mechanisms for distributing shares to employees and ensuring they remain majority shareholders).
1242:
1187:
1102:
780:
In addition, the employees' stake must give employees a meaningful voice in the company's affairs by it underpinning organisational structures that promote employee engagement in the company.
736:
provide the right to the increase in the value of a designated number of shares, usually paid in cash but occasionally settled in shares (this is called a "stock–settled" SAR).
1020:
934:
996:
1466:
885:
1122:
802:
An employee controlled company is a majority employee-owned company. This might arise through an employee-buyout. This can be set up through an
17:
1167:
859:
608:
generally limit the total number or the percentage of the company's stock that may be acquired by employees under a plan. Compared with
1021:
https://www.ato.gov.au/general/employee-share-schemes/employers/types-of-ess/concessional-ess/taxed-upfront-scheme---$ 1,000-reduction/
568:
616:, employee share ownership may not confer any meaningful control or influence by employees in governing and managing the corporation.
48:
907:
816:
Different forms of employee ownership, and the principles that underlie them, have contributed to the emergence of an international
820:
movement. A public service mutual, by definition, has a significant degree of employee ownership, influence or control, but most
1069:
1459:
914:
proposed that 20% of stocks in corporations with over $ 100 million in annual revenue be owned by the corporation's workers.
302:
1032:
1060:
See, for example, in the UK, The
Investment Association Principles of Remuneration (1 November 2019) Rule 2 xi (Dilution)
631:
A number of countries have introduced tax advantaged share or share option plans to encourage employee share ownership.
1282:
Erdal, D. (2008) Local Heroes: How Loch Fyne
Oysters Embraced Employee Ownership and Business Success, London: Viking.
1507:
1502:
1497:
1434:
1408:
1150:
837:
1452:
For All The People: Uncovering the Hidden
History of Cooperation, Cooperative Movements, and Communalism in America
1215:
966:
807:
744:
Employee ownership is a way of running a business that can work for different sized businesses in diverse sectors.
1474:
655:(ESOPs). In the UK there are two all-employee tax advantaged plans that enable employees to acquire shares: the
924:
561:
652:
31:
1378:
676:
210:
951:
666:
Varieties of employee share ownership plan (including associated cash based incentive plans) include:
792:
554:
497:
292:
215:
803:
733:
122:
1340:
836:(and studied) case of a group of companies based wholly on co-operative principles is the Spanish
1399:
In the company of owners: The Truth about Stock
Options (and why Every Employee Should Have Them)
956:
620:
532:
409:
384:
342:
255:
1341:"Employee buyouts and employee involvement: a case study investigation of employee attitudes"
841:
821:
698:
693:
644:
457:
681:
656:
537:
507:
349:
312:
275:
8:
788:
623:
often use employee share ownership to maintain the political feasibility of the founding
482:
477:
379:
151:
1397:
1321:
946:
892:
873:
828:
609:
517:
404:
132:
1455:
1440:
1430:
1414:
1404:
1360:
1325:
1313:
1146:
869:
817:
337:
322:
270:
250:
180:
137:
1292:
Pendleton, Andrew; McDonald, John; Robinson, Andrew; Wilson, Nicholas (1996-06-01).
1352:
1305:
976:
971:
929:
864:
Employee Share
Ownership Plans (ESOPs) became widespread for a short period in the
796:
710:
613:
601:
429:
394:
389:
374:
359:
297:
265:
170:
56:
40:
1090:. URN BIS/13/939. Department for Business, Innovation and Skills. 2013. p. 2.
30:"Employee stock ownership plan" redirects here. For the U.S. retirement plan, see
527:
512:
472:
369:
354:
327:
307:
237:
227:
911:
865:
766:
749:
605:
522:
487:
332:
282:
220:
92:
1491:
1364:
1317:
1309:
722:
624:
542:
502:
447:
72:
1444:
1418:
1356:
1394:
1293:
725:
pays a future cash bonus equal to the value of a certain number of shares.
467:
364:
102:
787:
In the UK organisations such as the
Employee Ownership Association (EOA),
1294:"Employee Participation and Corporate Governance in Employee-Owned Firms"
941:
896:
832:
462:
424:
414:
399:
127:
117:
97:
87:
82:
1033:"Attitudes to employee share ownership - See it from their perspective"
961:
241:
189:
142:
112:
107:
824:
identify themselves as social enterprises rather than employee owned.
684:
allow employee purchases that can be matched directly by the company.
1424:
900:
810:
are totally or significantly owned (directly or indirectly) by their
660:
639:
To facilitate employee stock ownership, companies may allocate their
1110:. Department for Business, Innovation & Skills. pp. 5, 20.
811:
640:
77:
589:
492:
317:
199:
1291:
593:
160:
1169:
The
Ownership Effect Inquiry: What Does the Evidence Tell Us?
419:
260:
600:
Most corporations use stock ownership plans as a form of an
1243:"Sharing Success: The Nuttall Review of Employee Ownership"
452:
287:
165:
63:
1084:
Moving to
Employee Ownership - a brief guide for employees
765:
ownership on behalf of all employees by the trustee of an
1104:
Sharing Success: The Nuttall Review of Employee Ownership
776:
model which combines both direct and indirect ownership.
1166:
Lampel, Joseph; Banerjee, Aneesh; Bhalia, Ajay (2017).
1395:
Joseph Blasi, Douglas Kruse; Bernstein, Aaron (2003),
1072:, Employee Ownership for Multinational Companies, 2010
935:
Worker representation on corporate boards of directors
752:). There are three basic forms of employee ownership:
27:
System giving employees stake in a company's ownership
1216:"Worker co-operative code international translations"
840:. Spanish law, however, requires that members of the
799:
play an active role in promoting employee ownership.
1473:(Summer 2011), The Beyster Institute, archived from
1185:
1165:
1427:
Equity: Why Employee Ownership is Good for Business
1140:
886:
Employee stock ownership plans in the United States
1425:Rosen, Corey; Case, John; Staubus, Martin (2005),
1396:
1130:. White Rose Employee Ownership Centre. p. 1.
1188:"Public service mutuals: The state of the sector"
1124:Employee Ownership In Britain: Size and Character
1120:
1489:
1429:, Boston, Mass.: Harvard Business School Press,
1464:
562:
1141:Nelson-Jones, John; Nuttall, Graeme (1987).
1121:Robinson, Andrew; Pendleton, Andrew (2019).
860:Employee share schemes in the United Kingdom
728:
1175:. The Ownership Effect Inquiry. p. 11.
1143:Employee ownership – legal and tax aspects
759:of shares by all employees as individuals;
569:
555:
1379:"Corporate Accountability and Democracy"
1338:
669:
1240:
1100:
14:
1490:
1467:"Creating a High-Performing Workplace"
1070:National Center for Employee Ownership
1269:Whyte, W. F. and Whyte, K. K. (1991)
997:"Employee Stock Purchase Plan (ESPP)"
739:
1186:Social Enterprise UK (April 2018).
705:
24:
1388:
25:
1519:
853:
838:Mondragon Cooperative Corporation
967:List of employee-owned companies
879:
717:
687:
634:
47:
1371:
1332:
1285:
1276:
1263:
1241:Nuttall, Graeme (4 July 2012).
1234:
1208:
1179:
1159:
1273:, New York: ILR Press/Itchaca.
1134:
1114:
1094:
1075:
1063:
1054:
1025:
1013:
989:
925:Center on Business and Poverty
653:Employee Stock Ownership Plans
13:
1:
1403:, New York, NY: Basic Books,
983:
872:, particularly following the
848:
677:employee stock purchase plans
32:Employee Stock Ownership Plan
18:Employee stock ownership plan
1345:Industrial Relations Journal
1298:Work, Employment and Society
7:
1471:Employee Ownership Insights
917:
10:
1524:
952:Economics of participation
883:
857:
691:
29:
793:Wales Co-operative Centre
734:Stock appreciation rights
729:Stock appreciation rights
498:Guaranteed minimum income
293:Diversification (finance)
1508:Types of business entity
1503:Employee-owned companies
1498:Employee stock ownership
1465:Staubus, Martin (2011),
1310:10.1177/0950017096102001
1101:Nuttall, Graeme (2012).
868:under the government of
808:Employee-owned companies
804:employee ownership trust
586:employee share ownership
582:Employee stock ownership
176:Employee stock ownership
123:Refund anticipation loan
1357:10.1111/1468-2338.00175
1339:Trewhitt, Lisa (2000).
910:presidential campaign,
93:Unsecured personal loan
1145:. Fourmat. Chapter 8.
1019:Australian Tax Office|
957:Employee benefit trust
822:public service mutuals
619:In the United States,
533:Universal basic income
410:Portfolio optimization
385:Investment performance
256:Alternative investment
842:Mondragon Corporation
694:Employee stock option
682:Share Incentive Plans
670:Direct purchase plans
657:Share Incentive Plan
538:Volatility (finance)
508:Risk-return spectrum
350:Fundamental analysis
216:Defined contribution
789:Scottish Enterprise
763:indirect (or trust)
663:share option plan.
610:worker cooperatives
483:Financial inclusion
478:Financial deepening
380:Investment advisory
152:Employment contract
1450:Curl, John (2009)
947:Worker cooperative
893:Whole Foods Market
874:Transport Act 1985
829:worker cooperative
740:Employee ownership
518:Structured product
458:Citizen's dividend
405:Passive management
133:Debt consolidation
1460:978-1-60486-072-6
870:Margaret Thatcher
818:social enterprise
621:private companies
592:'s employees own
579:
578:
251:Active management
181:Employee benefits
138:Debt rescheduling
16:(Redirected from
1515:
1484:
1483:
1482:
1447:
1421:
1402:
1383:
1382:
1375:
1369:
1368:
1336:
1330:
1329:
1289:
1283:
1280:
1274:
1271:Making Mondragon
1267:
1261:
1260:
1258:
1256:
1247:
1238:
1232:
1231:
1229:
1227:
1220:Co-operatives UK
1212:
1206:
1205:
1203:
1201:
1192:
1183:
1177:
1176:
1174:
1163:
1157:
1156:
1138:
1132:
1131:
1129:
1118:
1112:
1111:
1109:
1098:
1092:
1091:
1089:
1079:
1073:
1067:
1061:
1058:
1052:
1051:
1049:
1047:
1037:
1029:
1023:
1017:
1011:
1010:
1008:
1007:
993:
977:Social ownership
972:Market socialism
930:Co-determination
797:Co-operatives UK
757:direct ownership
711:Restricted stock
706:Restricted stock
614:co-determination
606:public companies
602:employee benefit
571:
564:
557:
440:
430:Target date fund
395:Investor profile
390:Investment style
375:Impact investing
360:Growth investing
298:Equity (finance)
171:Salary packaging
51:
41:Personal finance
37:
36:
21:
1523:
1522:
1518:
1517:
1516:
1514:
1513:
1512:
1488:
1487:
1480:
1478:
1437:
1411:
1391:
1389:Further reading
1386:
1377:
1376:
1372:
1337:
1333:
1290:
1286:
1281:
1277:
1268:
1264:
1254:
1252:
1245:
1239:
1235:
1225:
1223:
1214:
1213:
1209:
1199:
1197:
1190:
1184:
1180:
1172:
1164:
1160:
1153:
1139:
1135:
1127:
1119:
1115:
1107:
1099:
1095:
1087:
1081:
1080:
1076:
1068:
1064:
1059:
1055:
1045:
1043:
1035:
1031:
1030:
1026:
1018:
1014:
1005:
1003:
995:
994:
990:
986:
981:
920:
888:
882:
862:
856:
851:
742:
731:
720:
708:
696:
690:
672:
637:
575:
528:Systematic risk
513:Social dividend
473:Economic bubble
438:
370:Hedge (finance)
355:Government bond
308:Estate planning
238:Personal budget
232:
228:Social security
211:Defined benefit
204:
35:
28:
23:
22:
15:
12:
11:
5:
1521:
1511:
1510:
1505:
1500:
1486:
1485:
1462:
1448:
1435:
1422:
1409:
1390:
1387:
1385:
1384:
1370:
1351:(5): 437–453.
1331:
1304:(2): 205–226.
1284:
1275:
1262:
1233:
1207:
1178:
1158:
1151:
1133:
1113:
1093:
1074:
1062:
1053:
1024:
1012:
987:
985:
982:
980:
979:
974:
969:
964:
959:
954:
949:
944:
939:
938:
937:
927:
921:
919:
916:
912:Bernie Sanders
884:Main article:
881:
878:
858:Main article:
855:
854:United Kingdom
852:
850:
847:
778:
777:
770:
767:employee trust
760:
741:
738:
730:
727:
719:
716:
707:
704:
692:Main article:
689:
686:
671:
668:
636:
633:
577:
576:
574:
573:
566:
559:
551:
548:
547:
546:
545:
540:
535:
530:
525:
523:Sustainability
520:
515:
510:
505:
500:
495:
490:
488:Financial risk
485:
480:
475:
470:
465:
460:
455:
450:
442:
441:
435:
434:
433:
432:
427:
422:
417:
412:
407:
402:
397:
392:
387:
382:
377:
372:
367:
362:
357:
352:
347:
346:
345:
340:
335:
330:
325:
315:
310:
305:
300:
295:
290:
285:
283:Bond (finance)
280:
279:
278:
273:
268:
258:
253:
245:
244:
234:
233:
231:
230:
225:
224:
223:
221:Social pension
218:
213:
205:
203:
202:
196:
193:
192:
186:
185:
184:
183:
178:
173:
168:
163:
155:
154:
148:
147:
146:
145:
140:
135:
130:
125:
120:
115:
110:
105:
100:
95:
90:
85:
80:
75:
67:
66:
53:
52:
44:
43:
26:
9:
6:
4:
3:
2:
1520:
1509:
1506:
1504:
1501:
1499:
1496:
1495:
1493:
1477:on 2017-01-18
1476:
1472:
1468:
1463:
1461:
1457:
1453:
1449:
1446:
1442:
1438:
1436:9781591393313
1432:
1428:
1423:
1420:
1416:
1412:
1410:9780465007004
1406:
1401:
1400:
1393:
1392:
1380:
1374:
1366:
1362:
1358:
1354:
1350:
1346:
1342:
1335:
1327:
1323:
1319:
1315:
1311:
1307:
1303:
1299:
1295:
1288:
1279:
1272:
1266:
1251:
1244:
1237:
1222:. 21 May 2018
1221:
1217:
1211:
1196:
1189:
1182:
1171:
1170:
1162:
1154:
1152:1-85190-033-0
1148:
1144:
1137:
1126:
1125:
1117:
1106:
1105:
1097:
1086:
1085:
1078:
1071:
1066:
1057:
1041:
1034:
1028:
1022:
1016:
1002:
1001:Practical Law
998:
992:
988:
978:
975:
973:
970:
968:
965:
963:
960:
958:
955:
953:
950:
948:
945:
943:
940:
936:
933:
932:
931:
928:
926:
923:
922:
915:
913:
909:
904:
902:
898:
894:
887:
880:United States
877:
875:
871:
867:
861:
846:
843:
839:
834:
830:
825:
823:
819:
814:
813:
809:
805:
800:
798:
794:
790:
785:
781:
775:
771:
768:
764:
761:
758:
755:
754:
753:
751:
745:
737:
735:
726:
724:
723:Phantom stock
718:Phantom stock
715:
712:
703:
700:
699:Stock options
695:
688:Stock options
685:
683:
678:
667:
664:
662:
658:
654:
648:
646:
642:
635:Types of plan
632:
629:
626:
625:business plan
622:
617:
615:
611:
607:
603:
598:
595:
591:
588:, is where a
587:
583:
572:
567:
565:
560:
558:
553:
552:
550:
549:
544:
543:Watered stock
541:
539:
536:
534:
531:
529:
526:
524:
521:
519:
516:
514:
511:
509:
506:
504:
503:Market impact
501:
499:
496:
494:
491:
489:
486:
484:
481:
479:
476:
474:
471:
469:
466:
464:
461:
459:
456:
454:
451:
449:
448:Asset pricing
446:
445:
444:
443:
437:
436:
431:
428:
426:
423:
421:
418:
416:
413:
411:
408:
406:
403:
401:
398:
396:
393:
391:
388:
386:
383:
381:
378:
376:
373:
371:
368:
366:
363:
361:
358:
356:
353:
351:
348:
344:
341:
339:
336:
334:
331:
329:
326:
324:
321:
320:
319:
316:
314:
311:
309:
306:
304:
301:
299:
296:
294:
291:
289:
286:
284:
281:
277:
274:
272:
269:
267:
264:
263:
262:
259:
257:
254:
252:
249:
248:
247:
246:
243:
239:
236:
235:
229:
226:
222:
219:
217:
214:
212:
209:
208:
207:
206:
201:
198:
197:
195:
194:
191:
188:
187:
182:
179:
177:
174:
172:
169:
167:
164:
162:
159:
158:
157:
156:
153:
150:
149:
144:
141:
139:
136:
134:
131:
129:
126:
124:
121:
119:
116:
114:
111:
109:
106:
104:
101:
99:
96:
94:
91:
89:
86:
84:
81:
79:
76:
74:
71:
70:
69:
68:
65:
62:
58:
55:
54:
50:
46:
45:
42:
39:
38:
33:
19:
1479:, retrieved
1475:the original
1470:
1454:, PM Press,
1451:
1426:
1398:
1373:
1348:
1344:
1334:
1301:
1297:
1287:
1278:
1270:
1265:
1253:. Retrieved
1249:
1236:
1224:. Retrieved
1219:
1210:
1198:. Retrieved
1194:
1181:
1168:
1161:
1142:
1136:
1123:
1116:
1103:
1096:
1083:
1077:
1065:
1056:
1044:. Retrieved
1039:
1027:
1015:
1004:. Retrieved
1000:
991:
905:
889:
863:
826:
815:
801:
786:
782:
779:
773:
762:
756:
746:
743:
732:
721:
709:
697:
673:
665:
649:
638:
630:
618:
599:
585:
581:
580:
468:Credit union
365:Growth stock
343:independence
175:
103:Student loan
60:
1255:13 November
1226:13 November
1200:13 November
1046:13 November
942:Cooperative
897:WinCo Foods
833:cooperative
604:. Plans in
463:Cooperative
425:Stockbroker
415:Speculation
400:Market risk
128:Refinancing
118:Payday loan
98:Rent-to-own
88:Credit card
83:Charge card
1492:Categories
1481:2011-11-29
1006:2023-12-23
984:References
962:Labour law
849:By country
812:employees.
266:allocation
242:investment
190:Retirement
143:Bankruptcy
113:Title loan
1365:1468-2338
1326:154299458
1318:0950-0170
901:Starbucks
661:Sharesave
641:employees
318:Financial
271:economics
1445:57557579
1419:50479205
1040:ProShare
918:See also
659:and the
439:See also
78:Car loan
73:Mortgage
906:In his
590:company
493:Fintech
338:planner
323:adviser
200:Pension
1458:
1443:
1433:
1417:
1407:
1363:
1324:
1316:
1250:GOV.UK
1195:gov.uk
1149:
1042:. 2018
899:, and
774:hybrid
594:shares
276:growth
161:Salary
59:
57:Credit
1322:S2CID
1246:(PDF)
1191:(PDF)
1173:(PDF)
1128:(PDF)
1108:(PDF)
1088:(PDF)
1036:(PDF)
831:is a
769:; and
750:trust
645:stock
643:with
584:, or
420:Stock
328:asset
261:Asset
1456:ISBN
1441:OCLC
1431:ISBN
1415:OCLC
1405:ISBN
1361:ISSN
1314:ISSN
1257:2019
1228:2019
1202:2019
1147:ISBN
1048:2019
908:2020
795:and
772:the
453:Bank
333:plan
288:Cash
240:and
166:Wage
108:Pawn
64:Debt
1353:doi
1306:doi
612:or
313:ETF
303:ESG
1494::
1469:,
1439:,
1413:,
1359:.
1349:31
1347:.
1343:.
1320:.
1312:.
1302:10
1300:.
1296:.
1248:.
1218:.
1193:.
1038:.
999:.
903:.
895:,
866:UK
827:A
806:.
791:,
1381:.
1367:.
1355::
1328:.
1308::
1259:.
1230:.
1204:.
1155:.
1050:.
1009:.
570:e
563:t
556:v
61:·
34:.
20:)
Text is available under the Creative Commons Attribution-ShareAlike License. Additional terms may apply.
