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Old 05-05-2011, 07:37 PM
 
161 posts, read 559,234 times
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I am considering a job with a retail chain that prides itself on being "Employee Owned"

But what exactly does this mean? To be more specific, what will be expected from me?

Is participating in "ownership" optional or a requirement?

Will I be required to put up my own money and "invest" it in the company's stock?

Will they be taking money out of my paychecks each week similar to union dues to buy stock? I would only be part-time, and really would not have much to spare or risk on stocks?

Most people seem to talk about "employee owned" as a good thing. If someone could clear up what I could expect, I would appreciate it?
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Old 05-05-2011, 08:11 PM
 
1,237 posts, read 3,437,197 times
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My dad spent his entire career working for an employee owned company.

Each company may be different in how much you participate. The company my dad worked for was regional and as far as I know, only management was required to invest. I believe it was a minimum 15% and more if they wanted.

That said, there were probably thousands of employees who were students, part-time, or otherwise who couldn't tell the difference between working for an employee owned company vs a publicly owned company.

If you are part time I would think you won't be part of the group required to invest.
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Old 05-05-2011, 09:38 PM
 
4,796 posts, read 22,833,498 times
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I worked for one briefly, and the only difference I could tell was that management was stingier than any other management company I've ever experienced. This company was so stingy, they actually had a written policy that you could not tip more than $1 when traveling or entertaining for business. I was embarrassed to work for them and like many others I didn't stay long.

Before accepting the job, you may want to ask them what percentage of employees own stock, the number of shares each shareholder owns, and what percentage is held by management or upper management. That will give you an idea of exactly how 'employee owned' they really are. The company i worked for was really 'management-owned'. Once upon a time, everyone in the company owned shares but eventually due to turnover, the only people who owned shares were the senior partners. So when they wrote policies about tipping, claiming they were protecting shareholder profits, they really just meant they were padding their own pockets. Not that other companies don't do that, but it really chaffed the way that company's management acted like the tipping policy was a benevolent act of kindness that benefited me and not them.

I would also ask how performance is evaluated and rewarded. Oftentimes, your annual bonus comes in the form of stock options in the company, rather than in a cash bonus. If you are not familiar with stock options, that means it is a special type of share in the company with which you have limited ability to trade or transfer the stocks.

Generally you are not required to buy shares in an employee-owned company. If you are, it is called a work cooperative so I would look out for those terms anywhere in your offer letter or in company literature or publications.

Last edited by kodaka; 05-05-2011 at 09:52 PM..
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Old 05-06-2011, 12:15 AM
 
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What I understand is you get stock options that are not avalible on the open market. Generally you have to work there quite a while to get them and even once you do it does not insulate you from lay offs you just get to cash your stocks out when your laid off. I was offered a job at a place like that and would have taken it but it was project based and would take me 5 years to become a share holder so I would be exposed to all the lay off garbage until then, 5 years with one company is tough to do these days.
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Old 05-06-2011, 06:30 AM
 
Location: Airports all over the world
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I had one brief stint with an employee owned company. It was nothing to get excited about. The company went from publicly traded to employee owned. The executives got the lions share and everyone else got tossed a few scraps. People that hired on after it became employee owned got almost nothing. A few years later the executives saw a chance to make some money by selling the company. The rest of us were never told the company was even up for sale until it actually sold.
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Old 05-06-2011, 07:37 AM
 
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Default Employee owned companies can be a good thing!

I worked at a company owned company I wish I still worked for them! I am sure that all companies are different, as my experience is completely different than the above posters. So, understand the following information is just about my experience.

What happened with my company was it was completely owned by those working for them. The company founders wanted to make sure that it continued after them. Employees must work a certain number of hours (I think it equaled 8 or 9 months full time hours for the year) to be part of it.

There were two times during the year that they admitted members and after which ever date came first after you qualified, they enrolled you in the stock sharing program. They had a formula for how much stock dividends you would receive depending on how many hours you worked for the year and how long you had worked.

After five years you were fully vested (it was seven when I worked for them). If you left the company before that time you would receive a prorated amount of stock. You could not take the money, it stayed with the company. When you retire, you can request the stock and receive it in three installments- I cannot remember how long the intervals were/are.

One thing that was good (at the time, but bad too...) was in 1993 after I left the company I received part of the stock in cash. I really was broke at the time and for some reason stock before a certain date was available. BUT I lost the value of that money growing, plus I was suppose to pay penalties and tax but never did. Lucky for me the IRS never audited me or I would have been in trouble! I still have money awaiting me when I retire.

I love my old company and if I could find the right position (my old traveling division is gone!) I might go back.

I would think you need to research this company, find out what it means. All companies have public information about stocks, I believe. Not sure if you can find that, maybe you have to ask the company for a copy of it. But they should be willing to share it with you. This might be better than just asking them what it means.

Again, this is about my old company only.

Good luck with this. It can be a great benefit.
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Old 05-06-2011, 04:15 PM
 
724 posts, read 1,679,050 times
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Quote:
Originally Posted by kodaka View Post
This company was so stingy, they actually had a written policy that you could not tip more than $1 when traveling or entertaining for business. I was embarrassed to work for them and like many others I didn't stay long.
You mean that when workers own the means of production it doesn't necessarily lead to a utopian paradise?
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