Chapter

Introduction

Richard B. Freeman, Joseph R. Blasi and Douglas L. Kruse

in Shared Capitalism at Work

Published by University of Chicago Press

Published in print May 2010 | ISBN: 9780226056951
Published online February 2013 | e-ISBN: 9780226056968 | DOI: http://dx.doi.org/10.7208/chicago/9780226056968.003.0001
Introduction

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This chapter presents an introduction to shared capitalism of the U.S. economy. Shared capitalism refers to a diverse set of compensation practices through which worker pay or wealth depends on the performance of the firm or work group. In the United States, one major form for employee ownership is the Employee Stock Ownership Plan (ESOP), which federal legislation established to allow companies to contribute money to a trust to buy worker shares or to borrow money to fund worker ownership and then repay in installments from company revenues. Individual employee stock ownership refers to situations in which workers buy shares in the firm and vote those shares privately. Profit sharing pays workers specified shares of profits when the firm makes money. The payments can be cash bonuses on a yearly or more frequent basis or can take the form of placing the workers' share of profits in a retirement plan.

Keywords: shared capitalism; U.S. economy; employee compensation; Employee Stock Ownership Plan; stocks; employee ownership; shares

Chapter.  17492 words. 

Subjects: Economic History

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