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).

 

 

 

 


 

 


 

 

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.