You make it sound easy.
No, it isn't. There are three complications. First, broad employee ownership works only when it's combined with an entrepreneurial, participatory workplace.
Second, plans have to offer employees significant incentives relative to their fixed wage. In a demanding work environment, an employee-ownership program should yield at least a 15% increase in wealth per year above wages.
Third, companies have to cut what's given to top executives in favor of the lower ranks. There's no formula for this, but generally, I'm suggesting what technology execs have long known: It's better to own a small percent of a growing asset than a big percent of a stuck asset.
Senior editor Keith H. Hammonds (khammonds@fastcompany.com) is based in New York. Contact Joseph Blasi (jrbsc@hotmail.com) by email.
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