To join or not to join? Factors influencing employee share plan membership in a multinational corporation

Ownership of shares by employees in their own firm has grown substantially in the advanced world. In the past two decades, it increased in Britain (Pendleton, Whitfield, & Bryson, 2009), the United States (Kruse, Freeman, & Blasi, 2010), and in many EU countries (Pendleton, Poutsma, van Ommeren, & Brewster, 2005; European Federation of Employee Share Ownership, 2009). By 2004, one-fifth of British workplaces had share ownership plans covering one-third of private sector employees (Bryson & Freeman, 2010). In the United States in 2006, an estimated 18% of workers had shares in their own firm, some held through collective employee stock ownership plans, some bought through employee stock purchase plans that give employees a discount on shares, and some through their 401k retirement savings Plan money. In addition to owning shares, 9% of US employees had stock options with the firm. Taking account of the overlap, 24% had an ownership stake through shares or options (Kruse, Blasi, & Park, 2010, Table 1).