Peter Stavros’ Post

Even the Financial Times agrees - broad-based employee ownership is the next big thing. "In the past, PE ownership's main interest in rank-and-file workers has too often been on eliminating them to cut costs. The new focus on employee profit-sharing suggests that is about to change. If investors really believe that topc executives are motivated by share grants and options, they should reward PE firms who expand that principle beyond the elite few." Will the latest move save the PE business? It may help alleviate concerns about the social damage done in the past, but as many have commented before, the approach taken by PE is far from sufficient to change the rigged "economic game". We hope that the recent mainstreaming will help to destigmatise broad-based employee ownership, but we shouldn't fall into the whitewashing trap and accepting the models offered by PE as the future of employee ownership. There are far more interesting things happening in the field, all around the world. And we can certainly tell you about them.

"Over half of small business owners are near or at retirement age. Surveys frequently show, however, that few small businesses have a succession plan in place. This lack of support for conversions to employee ownership is a big miss for communities across the country that seek to retain small businesses—and the jobs and wealth that they create." Great to see the studies we developed with Project Equity cited in Fast Company. Thanks to Maureen Conway, Joseph Blasi and Matt Helmer for your tremendous contributions to the field of #employeeownership.

In the private equity industry, compensation packages are not one-size-fits-all. They're as diverse as the firms themselves, shaped by a multitude of factors. https://lnkd.in/eeVmDmJ2 #venturecapital #privateequity #infrastructure #executivepay #remuneration #reward

According to Gartner, employees are 60% more likely to stay with the organisation and 69% more likely to be top performers when they have a positive employee experience. You can elevate your business’s employee experience by providing financial literacy sessions to the workforce. At JFS, we facilitate group and one-to-one advisory sessions, where we seek to highlight the benefits of saving and investing for retirement. Services like this can give you the upper hand when retaining staff and hiring new employees. #financialliteracy #businessplanning

NEW: This week’s Agents of Impact Call features investors who are betting that worker ownership is not only good for labor, it’s good for capital, too. #ownershipeconomy Read the preview. https://lnkd.in/gKCUyG5j

From offering retiring owners an impactful alternate path to exit their businesses to narrowing the racial wealth gap, employee ownership transitions bring a whole host of benefits to the economy in addition to improving #JobQuality. Check out this article from ImpactAlpha to learn more. https://lnkd.in/gghAgb-7 CC: Mike Brady, Michael Morosi, Dennis Price, David Bank, Roodgally Senatus #EmployeeOwnership #WORCImpact #WORCEvidence

I love that this article highlights front and center how employee ownership can be such a powerful tool for creating greater alignment between workers and owners.

Is broad-based employee stock ownership one way to help working Americans build wealth?   According to ongoing research out of Harvard Business School, evidence is mounting that broad-based employee ownership can bolster companies’ financial and operational performance while also helping wage-earning Americans build meaningful wealth. Firms like KKR are actively adopting this approach, recognizing the substantial benefits it offers to companies, their workforce, and society at large. Learn about the movement by reading our latest article on HBS's The BiGS Fix:   https://lnkd.in/eEMMHXyt    “The big picture opportunity for society is to generate and create wealth at the bottom of the economic ladder,” Peter Stavros, KKR partner and co-head of global private equity, told us. “With the right leadership, the right commitment and being patient, this absolutely can work. It can deliver mind-blowing outcomes over time.”   HBS Associate Professor Ethan Rouen says the approach “is not only good for society - it is also good for business … The reason is that when you have more engaged workforces, you see lower turnover, higher retention rates, greater productivity and lower injury rates.”   #business #wealthgap #financialinclusion #employeeownership #workers #ownership #privateequity #socialimpact #opportunity #businessimpact #education #inspiration #data #storytelling #change #futureofwork Ownership Works Bank of America Citi Goldman Sachs Ford Foundation The Rockefeller Foundation TPG Advent InternationalWarburg Pincus LLC McKinsey & Company Gallup    

Stock ownership is a model that is commonly used in financial firms but less so in other industries. On the other hand gaps in understanding personal finance exist across all industries and is an important pillar of maximising the value of incentive programs.

Interesting article in NYT about how PE funds are embracing employee ownership by allocating equity more broadly to employees of their portfolio companies. This move reflects a growing recognition of the value of aligning incentives and fostering a culture of shared success. In a world where private equity owned businesses represent 15%+ of US GDP, it's an illustration of the win-win impact of more equitable workplace environments. #EmployeeOwnership #PrivateEquity https://lnkd.in/eDtjju-3