This is an interesting article on employee ownership, another way to provide employee engagement could be through the use of well diversified investments like Exchange Traded Funds. Rather then the company head stock. Exchange Traded Funds are far less risky then direct share ownership. If your one holding runs into trouble you can lose a significant proportion of your wealth. Where as if you had a widely diversified holding, like and ETF you and your company would be at less risk of difficult situations if the company stock suffers substantial down side movement in the share price. After all good people while the can be rewarded with company stock they can also be disinsentivised if this stock is destructive to their wealth.
Australia trails the rest of the developed world when it comes to employees holding a stake in their own company. The moral of the story is that an employee share ownership plan translates to motivated workers, writes Craig West
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| ESOP's fables - My Business Magazine[2].pdf | 122.49 KB |
