Encyclopedia of Opinion
Question
What are the advantages and disadvantages of companies being 100% employee-owned?
Position2 of 2

No, making a company 100% employee-owned can be disadvantageous

This position holds that making a company 100% employee-owned can be disadvantageous, on balance more so than beneficial. It argues that handing the whole firm to its workers is impractical, and that setting up an employee stock ownership plan (ESOP) is both expensive and difficult.

Supporting arguments · 1

  1. Setting up an ESOP is both expensive and difficult
    Due to how involved and complex ESOPs are, they tend to be very expensive to set up. An ESOP's complexity would also make it difficult to efficiently run the company.