engleski

Employee Share Ownership in Croatia

Employee share ownership is part of tradition in business of developed European countries but recently also in so called transition countries of Europe. There are more or less different employee share ownership models, mostly created in the process of privatization of state owned companies. Some transition countries have well designed legal framework for employee share ownership and recognize the need for tax and other benefits, while in the others there is no legal framework at all, or alternatively it is marginal, and privatization was not employee-oriented. In this article we present results of the first systematic research of the ESOP phenomenon in Croatia, although employee share ownership, one type or another, is increasingly becoming a reality of Croatian companies. Croatian privatization model did not stimulate ESOP programs so they appeared relatively late: with a view of overcoming difficulties caused by the primary privatization model, the consequences of which have led to serious economic and social problems. In addition to that, there is no tax relief, nor other mechanisms on the state level which would incentives expansion of employee share ownership. In the conducted empirical research on the sample of Croatian companies we have established that ESOPs are mostly implemented by large companies in all industries, companies in majority small shareholders’ and employee ownership. Managers of Croatian companies are satisfied with ESOP or a similar program their companies have implemented. In their opinion ESOP implementation has a moderate impact on the increase of productivity, profit and shares’ market value. In addition to that, mangers perceive there is a moderate impact of ESOP onto increase of employee participation in management and decision making.

Employee Share Ownership

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