Sharing the risk at the expense of power: paying wages in equity to face the Covid-19

authors

  • Aubert Nicolas
  • Cordova Miguel E.

keywords

  • COVID-19 pandemic
  • Coronavirus COVID-19
  • Financial crisis
  • Employee stock ownership

document type

OTHER

abstract

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.

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