Private equity sounds like a mechanism that extracts the most amount of value from a business, and transfers that wealth to the few general partners.

My company has been 100% employee owned for 10 years. It is a wonderful concept and works great.

As was mentioned, 60 Minutes did a piece on employee ownership back in 1975. You can view it on YT. The piece was optimistically talking about closing the (much smaller) wealth gap with employee stock ownership plans (ESOPs). The question becomes why hasn't the concept of employee ownership spread throughout the economy in the half century since then?

This is how capitalism should work. Workers getting their fair share will alleviate any concerns of poor productivity. A productive worker is a happy one. But they can't be unless they're rich if not wealthy.

I had the privilege of working for publix supermarkets for about 5 years and not only are they a fantastic company but they are employee owned. From the guys who scrub the toilets and bag the groceries on all the way up to the CEO I think everybody can take a little bit of pride when the ownership is set up that way.

I remember when I worked for Amazon and they told me, "This is your company". Hahahaahah, then proceeds to layoff about 90% of our team without notice or apology. I no longer strive to work for American companies. I aim for companies in countries where Unions exist or that don't allow firing without good reason. Job security is key!

CEOs and executive VPs are the nobles and we are the serfs.😞

He gives me hope.

Excellent Reporting!

Great report. Good to see someone in PE world gets it you get more from your employees when they have skin in the game.

BTW- In practice he's not advocating for employee *ownership*, just an employee *share*. Typically~10% of the gains from any private equity turnaround go to the employees, 90% goes to equity holders. Essentially the workers are getting the (relatively large for them) crumbs while owners take the cake. Some will argue that this is major progress, but we should be clear who really benefits here. He's featured on a recent Freakonomics podcast about this that has a bit more balance and background.

Smart guy. I'm in Australia and a few of our bigger businesses here do the same thing.

I was involved in an employee ownership company and retired in 2018 with almost six million dollars. It’s odd they didn’t talk about the tax code name . It’s either a partial or full ownership via an ESOP. The one they highlighted here isn’t that great .The company still has highly compensated bosses who are making 10 to 20 times the average worker is making. They have no say in operational decisions or health insurance plans . It’s a really good way for the ownership to cash out tax free as long as the money is reinvested in certain assets.

Private equity is a cancer of this country

Love this!

Amazing.

BEAUTIFUL!!!

Everybody wins when companies bring everyone along.

This is why I shop at Publix. They are employee owned. CEO's, investors, and elites greedily want to keep ALL wealth from profits to themselves. That's why every household today is a two-income household, young ppl aren't having kids, they will never own a home, and the middle class will disappear in a generation. All while CEOs, execs, and investors post record profits and have more wealth than any elite class in history. This has become DISGUSTING. Full time employees shouldn't be below the poverty line and depending upon welfare at the same time that execs take home record earnings.

I enjoyed this watch yet, this makes light of the situation for the whole economy. This is yet one company there are millions of multi billion corporations that do not give good salaries to employees. They're minimum wage pay check to pay check jobs and many have to have 2 pt jobs just to make ends meet.

I've often thought of this concept, but never had the kind of money that Stavros has. This should work under just about all business models, and I hope the this movement takes root.

Very cool

My hope is that this ownership percentage doesn't become a substitute for actual wage growth

It is tough to throughly explore this topic in under 20 minutes. When you do a 10 minute search of this firm you begin to see there is more to it than what is presented here. When you ask questions and take the time to think...you get a much fuller understanding of what is going on.

60 Minutes. Please investigate Employee Ownership further. There are several varitions for ESOPs. Your example is NOT one of the better ones. But thanks for getting the topic out once again in the public eye.

This is the kind of thing I'd expect to hear from a socialist or Bernie Sanders. This is very cool. Too bad I can't find any businesses that do this near me. If I started a new business, or bought an existing one, this is exactly the way that I would organize it. Thank you.

KKR is a good operator.

Why not unionize and negotiate bigger stock options?

It’s more about keeping employees. The employees can’t sell shares they must stay

If you’re not getting raises within the 5 years before they sell, you’ll know it was a scam. Also, make sure you don’t quit before the payout because you don’t actually own anything once you’re not an employer

I am an immigrant and I see that on the individual level Americans have a very hard time of saving money. I go into stores sometimes and see people buying nice looking things that they do not necessarily need. And then they have the nerve to cry that "oh, we don't have any money left..." And want the Government to fix things. Now, any and every dollar that was unnecessarily spent could have been invested and return 5-10% on average. It does not feel much in the first few years but after 5-7 years you really feel it. I know this because I practice these good habits. Now, that being said, I think that there needs to be some Government regulation to ease income inequality. But it will need to be done intelligently and without hurry and emotion. Perhaps employee ownership is a model to aim for as well. Maybe tax structures can be amended to reward employee ownership and dividends instead of stock buybacks.

We need more executives like him! I am not against Leo's making a lot, but they make waaaay too much and the regular guys make waaaay to little

Its not a "wealth canyon" either. You need to think in terms of space-time and light years.

This is part of what is missing in the US today. This is a part of what is needed to reduce some of the wealth gap inequity. If this gap is not reduced, things will only get worse.

Doing well just for myself is nothing compared to doing well with others who share a common goal....To be a millionaire while watching others fight for scraps... What's the point of life if you are only in it for your own benefit?

The Tesla worker-shareholder model comes to fruition.

Not every worker is begging to own stock. Some will prefer to invest in a new home or put their money in a savings account.

Employee ownership -great idea. Too many CEOs are happy to sell the company or move abroad and cast aside the workers.

It’s a beautiful concept ! Happy employees are highly productive. They actually make the profits happen. May this movement wave thru our culture !!!

What ever happened to Saturn, the employee owned car company?

The issue is there is only one of those guys for literally every hedge fund operator. And even then these folks simply got lucky. A needle in a haystack. 99.9% of hedgers would’ve laid off everyone, foistered the debt of the company thereby crippling its ability to function & bankrupt them then sold the husk. That’s the truth.

I’m still skeptical

Does an ESPP count?

Yea, but what about the new employees, how does the equation hold up?

I love the concept. Too bad greed gets in the way of making it commonplace.

If this helps people move closer to being able to afford a decent life in America then I am all for it…we need larger and larger companies doing this but that requires less and less billionaires

The misunderstanding of statistics

Kkr didn't mention private ownership at all when they bought my company in the mid 2000's... I'd fact check how often this really happens with them.

1 CEO vs an entire staff… numbers are not the same

This all sounds good until the down time comes and companies start losing money. Many people could only get by with a steady paycheck.

Socializing the workforce to get all the benefits of bullying, harassment, snitching and cannibalism of the acquisition with none of the economic consequences. You can see him almost smile every time you ask a question that has nothing to do with the real concern here.

This is hilarious. They say it’s not socialist for employees to own the company that they work at. I don’t think they know what socialism is. So either the employees own the assets of the business and have say as to how the business is run or they don’t

Gonna go enron. Do employee ownders get daily reports on the company financial disclosures

Read the book Barbarians at the Gate. It’s describes KKR’s nefarious tactics in taking over RJR Nabisco. I wouldn’t trust this guy as far as I could throw him.

Needs to be more prominent

CEO salary should be no more that 5- 10x of the combined average salary of all the employees. Nothing more.

The wealth gap is SICKENING In our country 🇺🇲. We're suppose too be the #1 best country? Wealthy people just can't settle making a 100 to 1,000 times the regular employee.

Skin in the game is the way.

It’s not that long

I can see this working for companies that produce products like the company featured in this story. Definitely not the service industry - not healthcare, not veterinary medicine, not assisted living, not construction. I can see these companies and their employees, under private equity, recommending expensive services that aren't needed, or even false diagnoses, just to boost profit margins. I can see them using faulty building materials in a home, or recommending deceptive investment tools. While some hardcore capitalists aren't intentionally evil, they sure do have blinders on that can lead to evil.

Employees should always control 51 percent of their company stock. It should be a law that makes it illegal to sell a controlling stake in any company to an outside investor, so the investors can never force decisions that are not in the best interest of the company employees. Stock holders and CEO’s should not be able to ruin a company and then move on to the next victim company after stealing all of the hard earned equity that the employees have built up.

📍9:14

Lately this ESOP is being dialed back. Seems some owners don’t see the value

This guy still makes to most money and works the least. It's just another sociopath who learned to say the right things.

Why does gaining market share negate pe from helping too much of the rich? WTF

The host seems very skeptical with Pete After all,this is a damn private equity firm. Their main objective is profit,money,profit and again,money. Sure,employee ownership is good but seems like there's few catches in the contract for it. Private equity wont ever offer it with no string attached.

Even though they 10x the return the workers only made a 0.5x-6.5x return. Real champions of the greater good

A lot of tech companies and startups already do this, as types of stock options. Also, more traditional companies have bonus plans based on the financial performance of the company. Not sure what is so special here

Huuuuuge wealth inequality in the U.S. We need a National Wealth Tax with redistribution for all.

This guy might be on to something.... Who has read his research paper? Wonder if the turnover rate is lower?

Good luck trying to decipher employee ownership structure buried in fine prints.

Make the employees the 100% owner, loans backed by the government.

This PE as others tries to make a company profitable and marketable to other investors. The PE can sell a company to make more profits to its investors. Thus, the PE can use any form or a tool possible to increase profits of a lousy company. So, in this case the PE believes that employee's ownership is the best way for making the company very profitable. Employee's ownership is different from workers ownership because employees may capitalists, managers, and the like. Essentially, a company has to make high profits to survive. Otherwise, the unprofitable company or the unit will die.

Workers profiting from the shares of the means of production, there’s nothing wrong with a little socialism.

Back when they were KKR, it was a much different story...

How much of total ownership goes to employees? Kkr worst experience to work with. They will squeeze you anyway

Commies!

I don't trust it

Well dude Private Equity does plunder, on the backs of the working class. Whether or not they cut jobs they make progress at the expense of the poor.

Said ' Shameless of those who is saying we are the currency owner has no problem at all but so many years goes in same situations conditions is going to worst to worst day by day even those has no plan how to manage basic right's of humanity's since beginning Experiment of each others' 😁

Pete Stavros: "this is not socialism." Socialism: "workers owning the means of production."

Tell that crap to the mindless generation. Pvt Equity companies see the writing on the wall. And are cashing out. They are taking the last boat out. His own words give the people part of the company. Then it will close. And the people are stuck with out a job. Remember 1980. Same thing. They get rich and the workers are left holding the bag. And the taxes 😅

This will never change human beings will come worse somebody will come along a little smarter a little worse because I will hold species is like that figure it out 👉🧠👈🤔

Why are they all dressed in black jackets?

Who is worse is the people that were forced to build the pyramids or now the civilization we live in now the people do the same thing but in the compassion way to the poor people you figure it out all species is the worst in the universe 🇺🇸⚖️👈🤔

So… socialism/communism?

Turns out, putting all your equity offering on CEOs (one person) wasn’t that bright of an idea. Lol. Turns out they will just milk the company for fast money. Lol.

Psst! For all those "winners", there are families, communities, and even nations that are the "losers". I'm not impressed.

Would love to see a part 2 story about the new owners @thenucorchannel @60minutes

Sure but no employee will get rich 😂

Modern day slavery

Evangelist, because it sounds nice, but what has he done with his power? Bah.

This sounds all good, but it looks like socialism by another name to me.

Employees aren't business execs nor have the training or knowledge of what's being told to them in business jargon terms. Horrible Idea, the guy obviously has no idea about unionization.

This is a variation of 'Marxism'. I'm a Millennial and would love to try something other than Western capitalism. I just don't think Boomers, Wall St., The Elites and Greedy FED would love this idea all that much.

Tell ya what... when I've got a billion dollars sitting in a bank...? I'll be interested in "employee ownership" too. 🙄 Disingenuous to the core. But nice attempt. 👌 😉

انَا اختكمَ مَن اليمَن وّالَلَه ماتكلمتَ الَا من جوّع وًّمَنَ ضَيَقَ الَحَالَ انَا وًّامَيَ وًّاخَوًّتَيَ تَشَرَدَنَا مَنَ بَيَوًّتَنَا بَسَبَبَ الَحَرَبَ نَحَنَ فَيَ حَالَهَ لَايَعَلَمَ بَهَا الَا الَلَهَ حَسَبَنَا الَلَهَ وًّنَعَمَ الَوكيَلَ فَيَ مَنَ اوًّصَلَنَا الَى هَاذا الَحَالَ 💔💔وًّالَلَهَ الَعَظَيَمَ مَا كتَبَتَ هَذا الَمَنَاشَدَهَ غَيَرَ مَنَ الَضَيَقَ وّالَفَقَر يَاعَالَمَ حَسَوّا فَيَنَا ارَجَوّكمَ وّالَلَهَ الَعَظَيَمَ رَبَ الَعَرَشَ الَعَظَيَمَ انَه الَاكلَ مَا فَيَ عَنَدَيَ بَالَبَيَتَ وًّالَلَهَ يَا اخَوّانَيَ انَهَ اخَوًّنَيَ بَقَعَدَوًّ بَالَيَوًّمَيَنَ مَافَى اكلَ وًّالَلَهَ وًّضَعَنَا كثَيَرَ صَعَبَ نَحَنَ 4 نَفَرَ دَاخَلَ الَبَيَتَ وًّابَيَ مَتَوًّفَيَ وًّلَا يَوًّجَدَ مَنَ يَعَوًّلَ عَلَيَنَا وًّسَاكنَيَنَ فَيَ بَيَتَ اجَارَ لَانَسَتَطَيَعَ دَفَعَ الَاجَارَ الَلَيَ بَاقَيَ عَلَيَنَا ''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''' اخي اول كلامي انا اقسم بالله على كتاب الله اني لااكذب عليك ولا انصب ولا احتال اني بنت يمنيه نازحين من الحرب انا واسرتي بيننا ایت الشهرب 20 الف يمني والان علينا 60 الف حق 3 شهور وصاحب البيت من الناس الي ماترحم والله يا اخي انه يجي كل يوم يبهدلنا ويتكلم علينا ويريد من البيت للشارع لانناماقدرنا ندفعله الأجار شافونا الجيران نبكي ورجعو تكلمو الجيران ومهلنالاخره الأسبوع معادفعنا له حلف يمين بالله هذا بيخرجنا إلى الشارع رحمه واحنا. بلادنا بسبب هذا الحرب ولانجد قوت يومنا وعايشين اناوامي واخوتي سفار والدنا متوفي الله يرحمه ومامعنا أحد في هذا الدنيا جاانبنا في هذه الظروف القاسيه اخوتي الصغار خرجو للشارع وشافو الجيران ياكلو واوقفو عند بابهم لجل يعطوهم ولو كسره خبز والله الذي له ملك السموات والارض انهم غلفو الباب وطردوهم ورجعو یبکو ایموتو من الجوع ما احد رحمهم وعطلة ردها لقمت عیش والان لوما احدنا ساعدنا في إيكيلو دقيق اقسم بالله انموت من الجوع فيا اخي انا دخيله على الله ثم عليك واريد منك المساعده لوجه الله انشدك بالله تحب الخير واتساعدني ولو ب 500 ريال يمني مع تراسلي واتساب على هذا الرقم00967717354582 وتطلب اسم بطاقتي وترسلي ولاتتاخر وايعوضك الله بكل خير اخواني سغار شوف كيف حالتهم وساعدنا وأنقذنا قبل أن يطردونا في الشارع تتبهدل أو نموت من الجوع وانا واسرتي نسالك بالله لولك مقدره على مساعد لاتتاخر علينا وجزاك الله خيرا^:":*"':";/;"'😢'💔💔😭😥}{÷|=¢=¢_🩷$%$$)"!;)()-)()♦️➖♾️)()(}. .🎉🎉🎉😢😢😢😢😢😢😢

Better for all, but much more for rich still

Why are there no jobs for smart educated people? All these new job search engines don't work.