Broader Opportunities for Worker Ownership

Policy or Initiative Description

Employers should create broader ownership opportunities for their workers. This could include expanding executive stock and profit-sharing compensation systems to all workers; making stock compensation tax-free; deferring taxes on stock options; further limiting the deduction for executive compensation for companies that do not offer broad-based ownership options; and establishing a social insurance program to protect workers who own company stock from extreme losses. With an ownership stake, workers may be more supportive of automation. Worker ownership is associated with greater employment stability, as well as higher firm productivity, profitability, and longevity.

Example

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Source

Bernstein, "Employee Ownership, ESOP, Wealth, and Wages." Employee-Owned S Corporations of America. 2016

Source

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