The following is an excerpt from an article originally published in CBS News. Reporter Allison Aubrey spoke with Ownership Works Founder Pete Stavros about the sale of C.H.I. Overhead Doors, in which the factory’s 800 workers each received payouts averaging $175,000 through the company’s employee ownership program:
“Seven years ago, all 800 factory employees at C.H.I. were given shares in the company by a surprising new owner: KKR, a private equity firm that buys, manages, and eventually sells companies aiming for a big return. The private equity industry has long had a reputation for layoffs and cost-cutting. But KKR partner Pete Stavros wants his industry to adopt a new model that gives every employee a small ownership stake. ‘I think it’s a superior way to operate a business in every respect,’ he said. ‘It is better for workers, it’s better for companies in corporate cultures, and in the end, it delivers better results.’
So far, Stavros is overseeing seven ownership payouts.
Aubrey asked, ‘Are you telling me that what you’re trying to do is to change the system entirely?’
‘That’s exactly what we’re trying to do,’ Stavros replied.”
Read the full article on CBS News.
