I might be getting a job in the corporate headquarters of a small retail chain that advertises as being “employee owned”. If I do get the job, what does that mean for me? Will they give me stock shares or something?
Well it seems in the USA , since there is no general superannuation system, you may have to have your salary diverted to superannuation? Can they force that on you without telling you the deal up front ? Or is it like you can refuse, but its too good an offer to refuse ?
Because one definition may be that pays into a fund to be your retirement income… as this…
“An employee stock ownership plan (ESOP) is a defined contribution plan, a form of retirement plan as defined by 4975(e)(7)of IRS codes, which became a qualified retirement plan in 1974. It is one of the methods of employee participation in corporate ownership.”
Basically, they have setup a retirement fund, and that can owns the company and own other stuff too, so as to hedge your bets… (reduce exposure, dilute the risk,etc)… but anyway its all setup so that your retirement fund is owning all or most of the company.
Still, the retirement may decide that a take over offer is too good to refuse and sell the company away , and still be your retirement fund ?
But there are other definitions…
2. Perhaps they just sell shares to employes so that its an asset the employee can dispose of immediately ? …
To say its employee owned, it must be due to a policy of ensuring that is the case, eg here’s a list of the top 100 that are at least 50% employee owned … which would seem to be a cut off for a policy.
It may be enough that if the company sold the shares to employees up front the shares then count as being employee owned, irrespective of who actually owns them now ?
If its floated , and trading at the stock market , then what if if the TRUE employee ownership floats down toward 50% ? 40% ? 30% ? Not sure that all the 50% +'s are actual or “by original sale” …
Or it could be owned by just the senior management team, say the top 10-15 employees. That would qualify the company as “employee owned”.
Best thing to have done was ask about it during the interview.