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Home > By DEPARTMENTS > Leadership and Governance for Sustainability > Governance Boards and Advisory Boards

Employee Ownership Provides Opportunities for Entrepreneurial Green Companies

Entrepreneurship and Employee Ownership services to help company growth that is stronger, faster and more sustainable...

Find green business solutions

Entrepreneurship Services

If you seek to develop and deploy innovative solutions designed to increase opportunity, employment, economic growth and community well-being, the Beyster Institute can supply programs, training and other services to help accomplish these goals.

Beyster Institute services include the identification, training and development of high-potential entrepreneurs and executives, policy education and advocacy, and regional economic development.

They serve growth entrepreneurs, small and medium-sized businesses, civil society organizations (CSOs), non-governmental organizations (NGOs), multilateral development banks, and government agencies both in the U.S. and abroad.

Employee Ownership

At conventional companies, employees have little real interest in the financial performance of the business. The result is that management must engage in a constant process of incentivizing, prodding, coaxing, threatening, cajoling and rigorously supervising in order to get employees to act in a way that achieves corporate goals.

Employee ownership changes a company when employees who stand to profit if the company prospers begin to pay attention to corporate initiatives and company goals. As they get involved in the action, they become proactive players, bringing creativity and initiative to their work. They begin to take pride in their company and its successes.

The data collected by researchers consistently shows that companies with employee ownership are faster-growing and more profitable than their non-employee-owned competitors.

Three primary sets of factors influence the selection of employee ownership vehicles used to establish a plan:

  • Ownership vision
  • Strategic business objectives
  • Specific characteristics of the company and its employees

    Individual-based plans for Employee Ownership

    Individual-based plans provide managers with discretion to decide who should receive stock awards and in what amounts. These plans are flexible and relatively inexpensive to implement. They can be used as incentives tailored to certain individuals or teams and may be linked with specific performance targets.

    Company-wide plans for Employee Ownership

    Company-wide plans are better suited for sharing equity with a wide cross-section of the workforce. In order to encourage companies to share stock with most employees, these plans generally provide significant tax advantages to the company. As a condition for receiving these tax benefits, strict rules regarding how these plans may be structured must be followed.

    West Coast Office:

    Beyster Institute
    1241 Cave St.
    La Jolla, CA 92038
    Phone: (858) 822-6000
    Fax: (858) 822-6001
    beysterinstitute.ucsd.edu



    Edited by Carolyn Allen, owner/editor of California Green Solutions
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