SITUATION:
The Ideal Situation: Amazon becomes an ESOP or some version thereof.
This move by Bezos to make Amazon an ESOP would change corporate America.
Amazon would become America largest Employee Stock Holder Company.
Stakeholder Capitalism solves Labor Union conflict & employee Issues;
Amazon would share success with employees with a “stake” in the enterprise.
SIGNIFICANCE:
Shareholders are always stakeholders in a corporation.
Stakeholders can become shareholders, own part of a public company.
Employee have shares of stock in the corporation they work for.
Stakeholders have an interest in the performance of a company.
Stakeholders include: stockholders, creditors, employees, families of the
employees, suppliers, customers, community, and others.
SOLUTION(S):
Amazon would award every employee with stock grant at one year of service.
Jeff Bezos can solve multiple labor, anti-trust, & regulation issues, & conflicts.
Making Amazon an ESOP would change the employee-company relationship.
Sets a standard or new business model for corporate structure & organization
SOURCES:
1) STAKEHOLDER CAPITALISM FOR AMERICA
Alexander William Salter – Assistant Professor of Economics Texas Tech U.
2) Director of Communications Jim Lakely
BACKGROUND:
Shareholders are always stakeholders in a corporation,
but stakeholders are not always shareholders.
A shareholder owns part of a public company through shares of stock,
while a stakeholder has an interest in the performance of a company
for reasons other than stock performance or appreciation.
