Employee Share Ownership

Employee share ownership involves employees acquiring shares in their employer so that they become shareholders. It takes a variety of forms, some of which may have greater significance and effects than others. The extent to which employees possess profit sharing, information, and participation rights varies considerably. This variety means that generalizations about employee share ownership have to be made with caution, as becomes evident in this article. The article provides more details of the various types of employee share ownership plans, before providing information on the incidence of employee share ownership. It examines the factors associated with the use of employee share ownership plans by companies (‘determinants’). The article also reviews the extensive literature on the effects of employee share ownership on attitudes, behaviour, and performance.