Economic Review, Vol. 55 No. 9-10, 2004.
Review article
EMPLOYEE SHARE OWNERSHIP IN CROATIA - THE SITUATION, THE POSSIBILITIES AND THE PERSPECTIVE
Lovorka Galetić
Sanda Rašić Krnjaković
Abstract
Among other things, the key for the success of a competitive, modern company lies in motivating the employees to work better and more effi ciently. An important role is played by alternative rewarding systems, especially employee share ownership. It encompasses a whole range of programs which include retirement-oriented plans like ESOP (Employee Share Ownership Plan) and 401 (k) plans, conventional stock options, stock options with premium prices and restricted stocks. Although they are not counted as share ownership in the real sense of the term, models like stock appreciation rights (SARs) and phantom stock are used by many companies in order to take advantage of the opportunities offered
by share ownership. This paper explains the employee share ownership systems, presents the main motives for their implementation and analyzes the situation, the possibilities and
the perspective of their application in Croatia.
Keywords
employee share ownership (ESOP); stock options; restricted stocks; (SARs) stock appreciation rights; phantom stocks; 401 (k) plans; privatization
Hrčak ID:
16314
URI
Publication date:
10.10.2004.
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