Sharing the risk at the expense of power: paying wages in equity to face the Covid-19
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authors
keywords
- COVID-19 pandemic
- Coronavirus COVID-19
- Financial crisis
- Employee stock ownership
document type
OTHERabstract
This paper aims to discuss which basic implications firms need to be aware of if they decide to include equity shares as a part of salary payments in order for them to tackle financial risks due to the COVID-19 crisis, benefiting with better liquidity. We discuss this alternative from the strand of potential financial benefits, but also include a power perspective, emphasizing how firms could share with employees their decision-making processes as well as part of their position of traditional hegemony. We concluded that firms’ decision regarding this financial alternative fits into a short-term benefit and at the same time threatens a long run position of power.