tag:blogger.com,1999:blog-3471471289744825428.post8514418555256680841..comments2024-03-11T00:31:41.186-07:00Comments on The Oregon Economics Blog: Beeronomics: Employee Owned CompaniesPatrick Emersonhttp://www.blogger.com/profile/17242234148546323374noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-3471471289744825428.post-82111451639210109812009-07-23T06:19:25.950-07:002009-07-23T06:19:25.950-07:00Thats a nice story. Thanks for sharing with us.
--...Thats a nice story. Thanks for sharing with us.<br />----------------<br /><a href="http://www.socaldebtcollectionabuse.com/news/charged_off.html" rel="nofollow">debt collector abuse</a>Unknownhttps://www.blogger.com/profile/11755578938923885993noreply@blogger.comtag:blogger.com,1999:blog-3471471289744825428.post-18699593862576509962009-07-15T03:14:23.349-07:002009-07-15T03:14:23.349-07:00thanks for share with us its really ,, nice ,,,
...thanks for share with us its really ,, nice ,,, <br /><br /><br />___________________<br />victor <br /><a href="http://www.directstartv.com/jump.html?referID=oa-0-173189" rel="nofollow">Get 28 movie channels for 3 months free</a>Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-3471471289744825428.post-4236299080224212932009-07-06T10:50:10.329-07:002009-07-06T10:50:10.329-07:00There is more research on employee ownership and c...There is more research on employee ownership and corporate performance on our Web site (the National Center for Employee Ownership) at http://www.nceo.org/main/articlelist.php/id/3. It turns out employees do a lot better too.<br /><br />When this research had reached maturity, a conference n it was held in D.C. with about 20 leading economists (Alan Blinder was one, Richard Freeman another). They were befuddled at first. How could it be that there was a "free lunch" for employees? Surely, the ESOP contribution (companies buy the shares for employees; employees do not buy them) had to show up in less of something. But is doesn't. The companies just do better and share more.<br /><br />I think this is one more indictment of model-based traditional classical economics. All those assumptions about rational economic behavior make for wonderfully neat equations, but, alas, we now know that humans are a lot more complicated creatures who respond to much more diverse incentives in much more complex ways. So maybe economists need to become a lot more inductive and gather data then create theory instead of the other way around.<br /><br />Corey Rosen<br />National Center for Employee OwnershipCorey Rosenhttps://www.blogger.com/profile/04532433244621668674noreply@blogger.comtag:blogger.com,1999:blog-3471471289744825428.post-6792324300742604062009-07-03T16:08:39.570-07:002009-07-03T16:08:39.570-07:00I can't imagine why anyone would think that &q...I can't imagine why anyone would think that "the incentives of employee owners are to reward themselves at the expense of the firm and to be more interested in the short term success of the company than its long term growth" - especially given the current economic situation.<br /><br />I think most employee owners can look at the company and say "well, I can extract a $50,000 bonus right now or let the company grow and get more later" and choose the latter, because they realize at the end of the day, $50,000 just isn't that much money in the grand scheme of things (besides being a wildly huge amount for a company with 50 odd employees - assuming they all get a similar amount, a tenth of that would be more realistic).<br /><br />Contrast that with executives of publicly traded companies who can say "I can drive our stock price up and cash out my options for $150 million plus my $100 million golden parachute and never work again."<br /><br />Now I'm well aware of the way people tend to discount the future in irrational ways that favor the short term, but the employee-owner jeopardizes his own livelihood by doing so, while the executive only jeopardizes others'.<br /><br />Now, I can see why a more diffuse decision making structure would might make it harder under certain circumstances for an employee-owned company to succeed, but similarly, it also mitigates against short-term thinking. Again, contrast that to publicly traded companies whose boards are typically stuffed with friends of the executives (who in turn serve on their friends boards), combined with a group of stockholders whose own interests are generally not nearly so intimately tied up with one company.<br /><br />So we need only ask ourselves what the incentive structure is like for those capable of awarding themselves short term gains to see that the EO company is likely better off.<br /><br />Anyway, I can't find anything in the anti-employee ownership arguments you present that doesn't strain credulity.GeoGeekhttps://www.blogger.com/profile/02596534612535469564noreply@blogger.com