Why the U.S. Needs More Worker-Owned Companies

Harvard Business

nonprofit organizations like the Heartland Capital Strategy Institute are bringing together institutional investors, private asset managers, and worker representatives to harness some of the $13 trillion of assets in workers’ pension funds to invest in worker-friendly businesses that offer good investment returns. The biggest difference is that workers have an important say in who manages them and how profits align with values. Klaus Meinhardt/Getty Images.

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Treat Employees Like Business Owners

Harvard Business Review

Many large corporations manage to find big bundles of shares (and huge amounts of cash) for executive compensation, even though there’s little relationship between senior-management pay and financial results. And companies — except for the very smallest — can implement an employee stock ownership plan (ESOP), often funded through borrowing. It takes a careful mix of mission, management, and culture.

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