Employees Investing Heavily in Employer Stock

According to a new report from the Institute of Management and Administration, 42% of the funds employees invest in the 401(k) plans of large public firms are invested in company stock. In just the 246 companies surveyed, employer stock accounted for $133 billion in the employees' accounts.

Employees Now Own 5.8% of All Corporate Equity

The NCEO now estimates that employees own the rights to 5.8% of the corporate stock in the U.S. The estimates are based on Form 5500 filings for ESOPs and 401(k) plans and an estimate of the value of stock options granted broadly to employees.

Employees Often Exercise Stock Options Early

According to economic theory, an employee given a stock option would be "irrational" to sell the option too soon before it expires. Models for pricing the value of options, in fact, typically assume they are held until the expiration date.

Employees Save Biddeford, Maine, Textile Plant

The 370 employees of a Maine textile plant that makes blankets for Sunbeam electric blankets have bought their company from Sunbeam. Sunbeam has undergone radical downsizing in the last year. The Biddeford plan is sole supplier and will continue to be.

Employees Starting to Vote Against Executive Pay

Employee ownership plans are often one of the largest blocs of ownership in public companies, almost always through ESOPs or 401(k) plans. Traditionally, employees have either not voted their shares at all or supported management.

Employees Sue United

A $1 billion class action suit has been filed by several United Airlines employees who contend the ESOP overpaid for the shares (Summers v. State Street Bank). The suit alleges that true value of the shares was $88, not $198, the price assumed in valuing the concessions made by employees.

Employees Sue Zell over Tribune ESOP

In a highly publicized move, several well-known Los Angeles Times reporters have filed a class-action lawsuit against Sam Zell over how he structured the ESOP at the Tribune Company (parent of the Times) and how he is now running it.