Business Atlas

How Enterprise Is Built
Sign In
Text size
100%
Theme
Business Models

Employee ownership

Collaborative and Crowd-Based Models

Citation Formats

General Reference

APA Style

BibTeX

Employee ownership is a business model in which a company's employees hold shares in the company itself, or in its parent company, aligning workers' financial interests with the business's performance. In the United States it is typically structured through stock option or stock ownership plans, most notably the Employee Stock Ownership Plan structure pioneered by investment banker Louis Kelso, while in the United Kingdom it has often been implemented through salary-deduction share schemes, with a notable wave following the privatization of bus services under Margaret Thatcher's government in 1985. Genuine employee ownership is generally distinguished from ordinary stock-based compensation by employees holding a significant collective stake, commonly cited at 25 percent or more, large enough to give them a real voice in how the company is governed.

Comments (0)
No comments yet. Be the first to share a thought.
Reader Challenges (0 open reader challenges)
No disputes yet. Spotted an error or a better source? Open the first one.

View At A Past Year

The atlas records no dated fact of its own for this entry, so there is no other year to choose.