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Employee Stock Ownership Plan
Employee-owned corporations are corporations owned in whole or in part by their employees. Employees are usually given a share of the corporation after a certain length of employment or they can buy shares at any time. A corporation owned entirely by its employees (a worker cooperative) will not, therefore, have its shares sold on public stock markets. Employee-owned corporations often adopt profit sharing where the profits of the corporation are shared with the employees. They also often have boards of directors elected directly by the employees.
Employee ownership appears to increase production and profitability, and improve employees' dedication and sense of ownership. However, critics caution that democratic leadership can lead to slow decision-making and employee stock ownership can increase employees' financial risk if the company does poorly.
Notable employee-owned corporations include the UK firm John Lewis, and the US firm Tribune Company.
Most features of employee-owned corporations described in this article are not specific to any one nation. The information on taxation and stock trading refers to United States law and may differ elsewhere.
CA1: forfeiture in employee stock plan okay
Weems v. Citigroup. No. 06-2565 (7/24/08). This is a pretty large MDL case, in which the plaintiffs claim that it is wrong for their employer to give them the option of receiving part of their salary as stock (at a...
Tribune cancels employee stock plan
Chicago, IL: Media conglomerate the Tribune Company, owner of such journalistic stalwarts as the LA Times, the Chicago Tribune and the Sun Sentinel, has announced that it will be canceling its employee stock plan once the company's bankruptcy protection elapses in the next year.
Financial Advisor Loses Millions in Employee Stock Plan
San Diego, CA: Many investors have lost money lately, but among those who have been forgotten are financial advisors who invested in their firm's employee stock options plans...
Judicial Recusals Due to Stock Ownership
My friend and colleague Eugene Volokh notes:
The L.A. Times reports that the Exxon Valdez punitive damages case might yield a 4-4 division—with no precedent being set, and the lower court decision being affirmed—because “Justice Samuel A...
"Supreme Court Recusals Because of Stock Ownership"
"Supreme Court Recusals Because of Stock Ownership": Eugene Volokh has this post at "The Volokh Conspiracy." I just posted a comment over there in response to the post.
Supreme Court Recusals Because of Stock Ownership:
The L.A. Times reports that the Exxon Valdez punitive damages case might yield a 4-4 division — with no precedent being set, and the lower court decision being affirmed —...
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My situation is somewhat difficult to describe, but about two months ago planes began arriving at an airport near my house and an organized stalking effort began. As I'm driving to and from home, cars will begin encircli
I would like this person 'anonymous' to get in touch with me. Question...
Is it legal for a company to overwork their employees?
Well, he could 1. Get a new job. Sister, I understand ya, if he's anything ...
Must a landlord return a deposit placed on an apartment before the lease was signed if the lease doesn't get executed?
good question and tough situation. What you can do realisticly and what you shou...
How to prevent an arrest from appearing in the local newspaper?
Dont know the law in Minnesota but in most jurisdictions an arrest is a matter o...
Our landlord just put our rental on sale. We have been excellent tenants and have never had issues with rent payments. We do not want realtors bringing clients into our home when we are not present. Recieved a letter fro
Landlords have a right under law to enter dwellings during normal daylight hours...
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