Stock Holder Valuation, Essay Example

Business managements could develop stock holder campaign among employees through giving them good choices of programs which they could enroll to. Allowing them to see the benefits of becoming partners of the organization helps a lot in making them understand how becoming a stock holder could increase their capacity to earn more from the business. Relatively, some employees might not be able to completely understand this matter as it would mean that part of their salary would be invested into the company’s business.

Without ample knowledge about investment, not everyone would agree to the program. Nonetheless, given proper orientation and dissemination, employees would have a better sense of understanding of what the program is for and how it could specifically benefit them as members of the business. Considering them as partners and not as mere workers, the employees would have a better sense of understanding on how much the organization values them.

For the business’ benefit, the primary element of developing better sources of financial support for the operation and development of the organization is the primary pay-up for such partnership. Workers are also likely to become more loyal and dedicated to the organization as they know they are also working for their own invested money and not for the company alone. With such idea in their heads, the employees would be more motivated to work at a better pace and be involved more on how the business grows.

Keeping such a partnership between the employees and the business owners is something that stock-holder programs are likely to promote. Notably, such connection between the two parties would create a distinct course of development that would aid the business into better course of growth from which the whole company and its people would best benefit from.

References

Aretz, Kevin; Bartram, Söhnke M. (Winter 2010). “Corporate Hedging and Shareholder Value”. Journal of Financial Research 33 (4): 317–371.

Bartram, Söhnke M. (2000). “Corporate Risk Management as a Lever for Shareholder Value Creation”. Financial Markets, Institutions & Instruments 9 (5): 279–324.

Lazonick, William; O’Sullivan, Mary (2000). “Maximizing shareholder value: a new ideology for corporate governance”. Journal Economy and Society 29 (1): 13–35.