As is often the case, proper planning is key to avoiding financial liability.
Article content
Article content
Giving employees a chance to own shares in the businesses has been trending lately, but it is not a new concept.
Employee ownership plans date back to the early half of the nineteenth century, when mostly large corporations began setting aside stock to supplement their workers’ retirement incomes. Eventually, pension plans emerged as the primary vehicle for workplace retirement savings, but some employee ownership plans remained, as they were seen to align the economic interests of employees and employers.
Article content
A notable American study showed that, by the early 2000s, there were more employee owners than private sector union members.
While Canadian employers have lagged behind their American counterparts in embracing employee ownership, a number of domestic companies do offer them, including Magna International, Friesens, PCL Construction and Golder Associates Inc.
Businesses that offer employees the opportunity to own a piece of the company benefit by attracting and retaining top talent, engendering a high level of employee engagement and creating a built-in incentive for increased worker output.
However, for all the positive attributes to employee ownership, there are some obvious and often unconsidered drawbacks. For instance, the ongoing share repurchasing obligations can cause cash flow issues as companies need to keep large...
By Oscar Okhifo Life coach, Nancy Umeh has issued a public retraction and apology over her previous accusations against Nigerian gospel singer Mercy Chinwo and her husband, Pastor Blessed Uzochikw...