Malaysia to Hold Conference on Employee Ownership

Malaysia, one of the Southeast Asia's fastest-growing economies, will hold a conference on employee ownership in late August. The conference will explore the growing use of employee ownership in the country, occurring primarily through share purchase programs.

Chinese Delegation to Visit U.S.

A group of high-ranking Chinese officials from the state privatization council will visit the U.S. in July to learn more about employee ownership.

IRS Issues ESOP Examination Guidelines

The Internal Revenue Service has issued examination guidelines for its agents to use when assessing ESOPs. There are no surprises in the guidelines, which, in any event, do not have regulatory force. They do, however, provide a good overview of basic ESOP procedures.

Employees Often Exercise Stock Options Early

According to economic theory, an employee given a stock option would be "irrational" to sell the option too soon before it expires. Models for pricing the value of options, in fact, typically assume they are held until the expiration date.

Getting Rich by Giving Away the Store

Most employee ownership plans involve someone selling stock to an employee plan. Paul Merriman just gave it away. Merriman bought a tiny operation called HISCO, a Houston industrial supply company, in 1974 for $100,000.

Get This Book

John Case of Inc. magazine has been one of the outstanding chroniclers of the revolution taking place at work.

Kemper Securities to Be Sold to ESOP

Kemper Securities, a division of the Kemper Company, will be sold to an ESOP that will own 55% of the company. One percent will go to management and 44% to existing Kemper Company shareholders. Kemper Securities has been a lackluster performer in recent years. It employs 1300 stockbrokers.

USAir, Pilots Agree on Stock for Equity Swap

The pilots union and USAir have agreed on a transaction that would involve substantial concessions in pay and work rules by the pilots in return for board representation and stock. The proposal would only become effective if other labor groups at USAir reach a settlement.

United Launches New Ownership Advertising Campaign

United Airlines has started an extensive series of print and electronic media ads stressing its employee owned character. The ads were kicked off by three page ads in major papers.