MondragÓn and Symmetry: Integration of Employees, Owners, and Directors

Governance is ultimately concerned with the alignment of information, incentive, and capacity to act. The challenge is aligning the responsibilities and authorities of all of the various constituencies to achieve the optimal conditions for growth and renewal. One of the most dramatic examples is the employee-owned enterprise, essentially taking the ESOP to its final conclusion. In this model, the two constituencies with the largest interest in the success of the venture are identical. It is not perfect; there are problems with the dual nature of the workers' interest, for example. In the short run, they want to maximize their compensation for work performed, but as owners they have a long-term interest in maximizing the value of the enterp....Figures 4.14.24.3