engleski

ESOP, privatization and stakeholder capitalism

In this article, different employee stock ownership plans are analyzed and compared. Privatization models based on insider ownership, i.e. management buyout - MBO , employee but-out – EBO and management employee buyout – MEBO are described. The hypothesis that the insider ownership through buyout will increase the efficiency of company’s human capital is described by analyzing positive effects of EBO and concept of instrumental satisfaction. It is highlighted that EBO can help in eliminating a part of the agency problems, as well as MBO , since managers become principals. In addition, offensive and defensive MBO s are presented. While offensive MBO s are based on development of new strategic resources and capabilities, as resource-based theory predicts, defensive MBO s are based on cutting costs and establishing solid managerial control, which is in accordance with the agency theory. Also, the relationship between MBO and stakeholder capitalism is discussed, with MEBO , as one of the most popular privatization methods, also being described. In addition, efficiency of privatization regarding the models used is compared.

ESOP ; Privatization ; Stakeholder capitalism

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