Securities as a Motivation Factor for Employees
2007
Anželika Berķe-Berga

The article deals with the possibilities of motivating employees of enterprises with personnel securities. This method of motivation is extensively used and has become popular worldwide. This is owing to the fact that ownership of personnel securities motivates employees to concentrate on realization of long-term strategic goals of the company and they are less influenced by the negative aspects related with different investment decisions. We focus on two main and popular types of personnel securities – personnel shares and convertible bonds in experience of USA and Sweden. When speaking about Latvia’s experience, there is still much to be done in this field. First, it is necessary to make the required corrections in primary legislation, since now employers and employees must pay the same tax rates on wages and personnel securities. The solution of this problem would be favourable not only for businessmen but also for the state, e.g., it will contribute to the reduction of the number of people in the „working age” leaving the country, because they will be more motivated to wirk in local enterprises in Latvia.


Keywords
employee shares, ESOP, stock options, convertible bonds, ownership

Berķe-Berga, A. Securities as a Motivation Factor for Employees. Economics and Business. Vol.15, 2007, pp.16-22. ISSN 1407-7337.

Publication language
Latvian (lv)
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