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The impact of employee shareholding on corporate governance: the employee shareholder director in France

Author

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  • Hélène Cardoni

    (La Rochelle University, Institute of Business Administration, CEREGE (EA1722))

  • Thierry Poulain-Rehm

    (La Rochelle University, Institute of Business Administration, CEREGE (EA1722))

Abstract

Employee share ownership offers the workforce an opportunity to participate in the growth of their company via two mechanisms: profit sharing and power sharing. Profit sharing has been widely studied in the academic literature. Power sharing, on the other hand, has received little attention—notably in the form of the presence of a director representing the interests of employees who own shares on governance bodies. We study 10 French companies with employee shareholder representation on governance bodies, and our findings reveal the dual nature of the role. On the one hand, the participation of employee shareholders in governance bodies seems to have an influence on the disciplinary, partnership, cognitive and behavioural levels. On the other hand, it can be a source of entrenchment, as tensions that are specific to this little-known mandate reflect tensions within the company itself.

Suggested Citation

  • Hélène Cardoni & Thierry Poulain-Rehm, 2023. "The impact of employee shareholding on corporate governance: the employee shareholder director in France," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 27(4), pages 1073-1114, December.
    • Handle: RePEc:kap:jmgtgv:v:27:y:2023:i:4:d:10.1007_s10997-022-09634-9
    DOI: 10.1007/s10997-022-09634-9
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