Employee Ownership: Promises,Performance,and Prospects

Abstract

Employee ownership has grown rapidly in the last 10 years. There are over 9,500 ESOP's covering about 10 million employees. Some of America's major companies now are partly or wholly employee owned. But has employee ownership really lived up to reasonable expectations for its performance? On the whole, the answer seems yes. Employees do like being owners, and often reap substantial financial benefits. Employee ownership when combined with substantial employee participation does improve corporate performance. While there have been significant abuses of these plans, they have offered a way to create an economy both more equitable and efficient.