Equity: Why Employee Ownership Is Good for Business
by Corey Rosen · 2005
In a nutshell
By Corey Rosen, John Case, and Martin Staubus (2005, Harvard Business Review Press), this book makes the research-backed case that broad-based employee ownership — stock options, ESOPs, profit sharing — improves both company performance and employee outcomes.
Overview
Corey Rosen (founder of the National Center for Employee Ownership), John Case, and Martin Staubus published Equity in 2005 through Harvard Business Review Press, summarizing decades of research on employee ownership.
Key Ideas
- Broad-based employee ownership correlates with better company performance when paired with participative management.
- Ownership alone isn't enough — it must be combined with real employee voice and information sharing.
- Stock options, ESOPs, and profit sharing each have different trade-offs for startups versus mature companies.
- Employee ownership can improve retention and attract talent willing to trade salary for upside.
- Poorly designed equity plans can create resentment if communication and education are weak.
Best For
Founders designing employee equity or profit-sharing plans as the company scales beyond the founding team.
Reference
Equity: Why Employee Ownership Is Good for Business — publisher / official page. Summary adapted from the Awesome Startup Books collection.
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