A theory that employees should have a partial or total ownership interest in the company for which they work. The idea behind worker capitalism states that employees will work harder and better if they have an actual, tangible incentive for the company to make a profit. See also: Employee stock ownership plan.
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A system in which employees own part or all of the firm for which they work. Proponents of worker capitalism believe employees will be more productive if they have a stake in the profits resulting from their labor. Employee Stock Ownership Plans were developed on this premise.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.