General > Beating a dead horse
Factory Direct: What does it mean?
Mendocino101:
--- Quote ---So, if the factory is owned by the employees, that means they are shareholders. And as the company gets bigger, there are more shareholders. Those shareholders want the company to be profitable.
So how is that different than other corporations?
--- End quote ---
not answering to Wall street for starters...
Brewman:
I work at a company which was once employee owned.
The theory we operated under was that those who share in the success of the company will do more to contribute to that success.
It's amazing the difference in how you approach your job when you have a vested interest in the company (other than your paycheck and benefits package).
In our case it worked extremely well. Some time ago we were purchased by a large publicly traded corporation and are no longer employee owned.
Mendocino101:
--- Quote --- I work at a company which was once employee owned.
The theory we operated under was that those who share in the success of the company will do more to contribute to that success.
It's amazing the difference in how you approach your job when you have a vested interest in the company (other than your paycheck and benefits package).
In our case it worked extremely well. Some time ago we were purchased by a large publicly traded corporation and are no longer employee owned.
--- End quote ---
That's exactly it...You care more because you do have a vested interest...
Chas:
OK, so it gives the employees more reason to work.
Every company I have ever worked for has done that - by simply reminding me that my paycheck was on the line. Based on how well I performed, I got rasies, or got fired.
At the management level, do the people running the operation make different decisions because they have to answer to shareholders, as opposed to, well, shareholders?
Who is "Wall Street?" I am. I own stock in various companies, so I darn well expect them to perform, or I'll dump the stock. As an employee, do I have that option?
Just some thoughts. I hear a lot of 'employee owned' stories, and I guess I just don't get how it makes the company automatically better or worse.
drewstar:
--- Quote ---OK, so it gives the employees more reason to work.
Every company I have ever worked for has done that - by simply reminding me that my paycheck was on the line. Based on how well I performed, I got rasies, or got fired.
At the management level, do the people running the operation make different decisions because they have to answer to shareholders, as opposed to, well, shareholders?
Who is "Wall Street?" I am. I own stock in various companies, so I darn well expect them to perform, or I'll dump the stock. As an employee, do I have that option?
Just some thoughts. I hear a lot of 'employee owned' stories, and I guess I just don't get how it makes the company automatically better or worse.
--- End quote ---
I t doens't make it automaticly better or worse, but many employee owned companies have seen some success when compared to other non employee owend companies in the same industry.
Profit sharing is another great tool.
When someone referes to "Wall Street" yes, it's a metaphor for the investors. Sure, I'd say most of us all are investors via our retirement plans, 401Ks, and other such investment tools.
Publically held companies are legally respsonsible to act in the best interests of thier Stock Holders and are controlled by majority share holders that sit on the board of directors.
The main point being:
Many times, a stock holders best interests are not inline with what might be best for the consumer or the employee.
Not always, but sometimes.
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