In the Company of Owners: The Truth About Stock Options (And Why Every Employee Should Have Them) [Hardcover]

Joseph Blasi (Author), Douglas Kruse (Author), Aaron Bernstein (Author)

Book Description

Publication Date: January 7, 2003

The string of business scandals that recently engulfed America painted a picture of corporate chieftains lining their pockets by cutting corners, cooking the books, and duping gullible investors. In doing so, greedy CEOs have hijacked what could be one of the most important business innovations in decades: stock options for all employees.Joseph Blasi, Douglas Kruse, and Aaron Bernstein-all leading experts on employee ownership-show how American companies would perform much better if they followed the lead of many high-tech firms and granted options to their entire workforce, rather than to just a tiny corporate elite. Using SEC data in a way never done before, they document the vast wealth executives have accumulated for themselves. It shows how the abuse of options has taken place not just at scandal-ridden companies such as Enron and WorldCom, but across the entire reach of corporate America.In the Company of Owners argues that there's a better way. Broad-employee ownership through stock options offers a new model for U.S. corporations and American capitalism. The authors explain how employees and shareholders alike would benefit if most large companies adopted what they call the partnership capitalism approach-using options to encourage employees to think and act like owners.A searing critique of business as usual in America's executive suites, this book offers a comprehensive vision for how stock options can enrich companies, employees, investors, and the U.S. economy as a whole. With its remarkable new evidence and astute synthesis, In the Company of Owners will change the way America thinks about stock options.Joseph R. Blasi, a sociologist, and Douglas L. Kruse, an economist, are professors at Rutgers University's School of Management and Labor Relations. Aaron Bernstein is a senior writer at Business Week magazine.

Editorial Reviews

From Publishers Weekly

Stock options have been much maligned recently, mainly because of fatcat executives who've cashed them in for millions, before the share price tanks and average shareholders suffer. But stock options can be a very good thing if handled correctly, say Rutgers University professors Blasi and Kruse and BusinessWeek editor Bernstein. They make the argument for why options-offered to all employees, not just upper-level execs-are a serious boon, "bringing about a more productive company and, ultimately, rewarding employees and outside shareholders alike." The book does seem a bit quaint at times, such as when it talks about how Silicon Valley types have got it right when it comes to options. (Many of those high-tech firms, of course, are either defunct or fighting for their lives.) The pace is somewhat plodding, as the authors recount company strategies and cite various studies, but the introduction and conclusion focus on sexier, newsier issues such as the "option-induced avarice" that led CEOs to jimmy company numbers in order to boost stock price. The authors' plea is a valid one: that "partnership capitalism" not die as a concept for the many, just because of the greedy abuses of a few.
Copyright 2002 Reed Business Information, Inc.

From Library Journal

Stock options have gotten a bad name in the recent business scandals, but Rutgers professors Blasi and Douglas Kruse and Business Week editor Aaron Bernstein argue that the abuses of a few should not blind us to a very useful remuneration tool. Rather, they espouse the belief that stock options should be offered to all employees in all stock companies, calling their proposal "partnership capitalism" or "stock option capitalism." They make a strong case that offering stock options to everyone can motivate employees, foster a more efficient organization, and flatten hierarchy while remaining forthright about potential problems and abuses. The authors have published extensively in academic presses on this topic and, with this clearly written volume, are trying to spread the word to the general public. They use little jargon and put their extensive footnotes, appendixes, and other scholarly buttressing in the back of the book. Libraries that have some of Blasi and Kruse's early works can pass; otherwise, this is strongly recommended for academic and public library investment collections.
Patrick J. Brunet, Western Wisconsin Technical Coll. Lib., LaCrosse
Copyright 2002 Reed Business Information, Inc.

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Product Details

• Hardcover: 256 pages
• Publisher: Basic Books; First edition (January 7, 2003)
• Language: English
• ISBN-10: 0465007007
• ISBN-13: 978-0465007004
• Product Dimensions: 9.6 x 6.4 x 1.2 inches
• Shipping Weight: 1.4 pounds
• Average Customer Review: 5.0 out of 5 stars  See all reviews (2 customer reviews)
• Amazon Best Sellers Rank: #1,969,275 in Books (See Top 100 in Books)

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Most Helpful Customer Reviews

3 of 4 people found the following review helpful:

5.0 out of 5 stars Clear, Focused and Fair Book on a Controversial Topic, January 26, 2003

By A Customer

This review is from: In the Company of Owners: The Truth About Stock Options (And Why Every Employee Should Have Them) (Hardcover)

There have been a number of slams against stock options by people who think they are at the heart of corporate scandals. This readable and thorough book points out that sharing ownership broadly has been a tremendous benefit to many companies, although a few have abused it. Those of us who have seen companies grow dramatically through the efforts of incentived employees know that options are the best system devised for sharing ownership broadly, and that current attempts to restrict them will do more harm than good for the US economy. This book carefully documents both the benefits and abuses, and should be useful for entrepreneurs who want to build companies, and for regulators who want to really curb abuses while saving the benefits -- and chance for broad based wealth creation -- that employee ownership represents.

3 of 5 people found the following review helpful:

5.0 out of 5 stars Timely examination of employee ownership, January 15, 2003

By 

Corey Rosen (San Rafael, CA USA) - See all my reviews
(REAL NAME)   

This review is from: In the Company of Owners: The Truth About Stock Options (And Why Every Employee Should Have Them) (Hardcover)

This is a very carefully crafted and persuasive book. The authors do a great job of laying out the argument for why sharing ownership broadly with employees is good for companies, shareholders, and employees, while concentrating ownership in just a few executives is a bad idea.The book is especially important now with all the debate going on about stock options, which they point out are just one of the ways companies can share ownership. The book provides the most comprehensive data on this subject to date, so its arguments are not just based on preconceived notions. It deserves a wide audience, especially among corporate decision makers.