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Employee Stock Ownership Plans

July 3, 1996 | From Bloomberg Business News
Avis Inc.'s 13,500 employee-owners will double the worth of their shares in the company by selling out to HFS Inc., a real estate sales and hotel licenser. And the $800-million cash-and-debt offer announced Monday does almost as much for the theory that says companies do better when the workers have a stake. "It's very positive. You can see that it actually worked," said Ed Carberry, a worker at the nonprofit National Center for Employee Ownership in Oakland.
Employees of major companies have complained in recent years that they have been working harder while getting a shrinking share of the expanding pie of corporate wealth. That now appears to be changing. Many management experts say that this week's announcement by Levi Strauss & Co. that it will reward its entire work force for meeting specific growth targets through 2001 reflects a new corporate mind-set that business success means giving the worker a tangible stake in corporate profits.
May 30, 1996
MAI Systems Corp.'s board approved a proposal to increase the number of authorized common shares to 25 million from 10 million. MAI said the board also increased the number of shares in the company's employee stock option plan by 182,500 to an aggregate of 1 million. MAI installs and supports information systems solutions primarily in the hospitality, gaming, manufacturing and distribution industries.
February 10, 1996 | From Times Wire Services
Levi Strauss & Co., the world's largest brand-name apparel maker, is moving ahead with a stock buyback program that would value the company at $14 billion and ensure that it would remain in family hands. After months of planning and negotiations, the jeans and clothing maker is offering $265 per share to employees and some members of the family that owns the maker of Levi's jeans, Dockers brand clothing and Brittania Sportswear, company spokesman Sean Fitzgerald said Friday.
With its pastel carpets, chandeliers and ornate furnishings, Louise Pomeroy's office resembles an intimate parlor at home rather than the executive suite of a multimillion-dollar business. But the decor is part of her effort to maintain a homey atmosphere at her Abigail Abbott Staffing Services Inc., where employees as well as clients are treated like family.
August 30, 1995 | From Reuters
Lockheed Martin Corp. said Tuesday that it set stock ownership guidelines for key employees to encourage management to strive for superior results for the company and its shareholders. The aerospace giant, which was formed this year by the merger of Lockheed Corp. and Martin Marietta Corp., said it will ask 1,400 employees to establish or increase their equity holdings in the company at a level two to five times their annual base salary.
August 17, 1995 | From Reuters
Mutual fund giant Fidelity Investments said Wednesday that its parent, privately held FMR Corp., has given a 51% voting stake to 50 top executives and fund managers in what is believed to be the biggest ever transfer of voting control of a company to its employees.
August 16, 1995 | TOM PETRUNO
A lot of people lost money investing in shares of Broadway Stores and its predecessor chain, Carter Hawley Hale. But probably no one lost more than the employees who tried hardest to believe in their company--and who bet their retirement money on the business. There's a lesson here for every employee, regardless of your company or your rank: Don't invest excessively in the stock of your own business. Keep it to a relatively small portion of your retirement funds and your total financial assets.
July 16, 1995 | JAMES FLANIGAN
For a clear picture of the American worker today, under pressure, threatened by competition at every turn, yet capable of great accomplishment and even of making a buck or two, look to employee-owned United Airlines. The employee stock ownership plan (ESOP) that bought 55% of UAL Corp.
August 15, 1994 | From Reuters
USAir Group Inc. and its pilots union are further apart on wage concessions than expected, but a deal to rescue the troubled carrier from high labor costs still looks possible, analysts say. Before the union issued a sweeping proposal early this month to restructure USAir in exchange for pay cuts, some analysts had seen the airline implementing labor cost savings by September. That forecast now looks overly optimistic.
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