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EMPLOYEE OWNERSHIP AND CORPORATE PERFORMANCE
Researchers now agree that "the case is closed"
on employee ownership and corporate performance.
The research comes to a very definite conclusion:
The combination of ownership and participative management
is a powerful competitive tool. Neither ownership
nor participation alone, however, accomplishes very
much. Findings this consistent are very unusual.
We can say with certainty that when ownership and
participative management are combined, substantial
gains result. Ownership alone and participation
alone, however, have, at best, spotty or short-lived
results.
DEDICATED
WEBPAGES
Over the years, several organisations accross
the world have reported on new research on employee
ownership and corporate performance. Now that
a substantial body of work exists on the subject,
they thought it would make sense to summarize
it in one place. This is why they set up dedicated
pages about employee ownership and corporate performance,
here are the best ones:
The
ESOP Association in USA
The
NCEO - National Center for Employee Ownership
in USA
The
Employee Ownership Group in Australia
RESEARCH
19.07.2011:
Finland:
The impact of Personnel Funds (doctoral thesis
by Christina Sweins)
18.01.2011:
According
to the Center for Strategic Analysis of the French
Republic, the social performance of a company
having employee share ownership is 52% higher
than that of companies which have neither employee
share ownership nor employee savings plan; the
effectiveness of employee share ownership has
to be reinforced by ensuring the representation
of employee shareholders. More
information
10.01.2011: New study shows broad-based
Stock Option Plans improve performance: One of
the most comprehensive and convincing studies
to date on the effect of broad-based option plans
on company performance was recently released.
Looking at non-executive options and the subsequent
firm operating performance as measured by the
firm's industry adjusted ROA, the authors found
that "both the existence of a broad based
option plan and the implied incentives of an option
plan exert a positive effect on firm performance..."
By contrast, companies with grants focused on
executives did worse. More
10.09.2010: Geert
Braam en Erik Poutsma - De invloed van financiële
participatie door management en werknemers op
financiële ondernemingsprestaties in Nederland
1992-2009
18.06.2008:
New
Research
Confirms Majority-Owned ESOPs More Productive
Than Non-ESOP Counterparts
The study, Employee Ownership and Participation
Effects on Firm Outcomes, was conducted by Brent
Kramer, an economics doctoral candidate at the
time of the study and now a Ph.D. The Employee
Ownership Foundation and the ESOP Association
contributed membership information for the study.
A total of 328 ESOP firms and over 2,000 matching
non-ESOP firms were included in the study.
13.02.2008: Universität
Chemnitz - Research Project: Business elements
in the new payment policy, extent and effects
of contingent compensation
18.10.2007: "Les
effets de participation des salariés sur la performance
des entreprises", Xavier Hollandts - thèse
de doctorat soutenue à Lyon le 4.9.2007
07.03.2007: The CoCo Report: Work, Happiness
and Employee Ownership: Companies where workers
have a say in decisions and a stake in ownership
are more productive because staff are happier,
according to a new report in the UK. The study
found absence levels were lower and workers were
more committed in "co-owned" companies. The British
Government was urged to introduce tax incentives
to encourage the launch of more co-owned companies.
Download
the full report
20.02.2003: New major document: Report for
the European Parliament: A Review of the Issues
and Evidence, by Virginie Pérotin and Andrew
Robinson:
Employee Participation... A Review of the Issues
and Evidence, Report for the European Parliament
(60 pages, PDF)
30.11.2002: Wonderful research report on
companies cases in UK: "Employee
ownership, motivation and productivity",
November 2002 (pdf, 34 pages).
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For
information and contact
EFES - EUROPEAN
FEDERATION OF EMPLOYEE SHARE OWNERSHIP
FEAS - FEDERATION EUROPEENNE DE L'ACTIONNARIAT SALARIE
Avenue Voltaire 135, B-1030 Brussels
Tel/fax: +32 (0)2 242 64 30
E-mail: efes@efesonline.org
Web site: www.efesonline.org
EFES' objective is to act as the umbrella organization
of employee owners, companies and all persons, trade
unions, experts, researchers, institutions looking
to promote employee ownership and participation
in Europe.
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