![]() ![]() A well-designed total rewards package with equity as a component sends a message to employees that the company values sharing ownership throughout the organization and tying employees into the long-term goals of the business. In this paper we are trying to present all the steps that the employees need to now and to look for, before and after being part on the company by using stock options methods. Today, employee stock awards aren't as common, but they still play a very important role in the total rewards package. But knowing how sensitive is this topic, we should consider carefully some factors involved such as the type of business, employee demographics and motivations, financial performance and condition, and the current stage of the company in its life cycle. After developing many managing models, owners start thinking in the way how to internationalize and how to develop new managing models, in order to increase the company values, and to motivate stuff. If we go back in '90, "stock option" plans didn't recognize as a method to increase the firm value, because the owners of the company think by himself and take the actions depend on their knowledge. Thus, its not surprising that both the SRC ESOP and Jack Stack play central roles in this case study. The subsequent success of SRC and the role its employee stock ownership plan (ESOP) played in this success is legendary. At that time, a share of stock was worth 10 as of 2012, a single share is valued at about $361! But although the company is well-known for its financial record, it is safe to say that it is most famous for its founder and current CEO, Jack Stack, and his insistence on converting his company into an employee-owned firm very early on. Headquartered in Springfield, Missouri, the SRC story is one of tremendous financial success, virtually from the beginning of the organization in 1983. However, their primary business expertise and core competency is remanufacturing - the process of taking used transportation parts, for example, and returning them to their OEM (original equipment manufacturer) specifications. SRC Holdings Corporation, formerly Springfield Remanufacturing Corp., is a well-known manufacturing enterprise comprised of numerous companies spread across 12 Business Units engaged in activities ranging from manufacturing to packaging to management consulting and training. ![]()
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