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Freakonomics Radio

587. Should Companies Be Owned by Their Workers?

May 9, 2024
46:33
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Experts Marjorie Kelly, Corey Rosen, and Pete Stavros discuss the growing employee ownership movement and its impact. They explore the benefits of Employee Stock Ownership Plans, challenges of implementation, emotional and financial impacts on employees, and contrast with private equity models. Criticisms and calls for a more democratic economy are highlighted.
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Podcast summary created with Snipd AI

Quick takeaways

  • Private equity firm KKR's introduction of partial employee ownership is a positive step towards profit-sharing with employees.
  • Critics highlight concerns that KKR's ownership model may not truly empower employees like traditional ESOPs.

Deep dives

Evolution of Colberg-Kraviss Roberts to KKR

Colberg-Kraviss Roberts (KKR) has transitioned from being portrayed as 'barbarians' during their leveraged buyout of RJ Nabisco to becoming the world's second largest private equity firm after Blackstone, now with over 250 firms in their investment portfolio and nearly a million employees.

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