Employees to Get Stake in Telecom Eireann

Telecom Eireann, the Irish telephone company, will sell employees a $400 million, 14.9% stake as part of its planned intial public offering next year. The company is being privatized, with 35% of the shares already owned by Dutch and Swedish telephone companies.

New Study Shows Employee Ownership Companies More Stable

A new study by Margaret Blair of the Brookings Institution and Douglas Kruse and Joseph Blasi of Rutgers University shows that publicly traded companies that are at least 20% owned by employees are more organizationally stable than non-employee ownership companies.

Japan Makes Stock Options Practical

Until now, stock options in Japan were subject to so many constraints that they were virtually unused as employee compensation. In legislation passed in May, however, the rules have been significantly eased.

Virginia Commission Recommends Promoting ESOPs

The Commonwealth Competition Council and the Secretary of Administration in Virginia have issued a report that recommends the state enact legislation to promote the use of ESOPs in the private sector and in the process of privatizing state-owned or operated entities.

Employee Ownership Companies Top Best 100 Places to Work List

At least 31 of the 100 companies named as the "Best 100 Companies in America to Work For" have at least 10% of their stock owned by employees. The number is probably higher than this, however, as some of the companies may have broad ownership plans that we have not identified.

New Survey on Company Stock in 401(k) Plans

A new survey by Pension Forum reported in the September 1997 issue of Institutional Investor reports that 39% of the responding companies provide their entire match to employee 401(k) plan deferrals in the form of company stock. Another 12.8% match partially in company stock.

Defense Department Audit Agency's ESOP Position Challenged

In recent years, the Department of Defense Contract Audit Agency (DCAA) has taken the position that interest paid on ESOP loans is not a compensation cost reimbursable by the government in defense contracts.