Tribune Challenges/Healthier Employees?/Building a Company Culture
August 3, 2007

Employee Ownership Update

The August 1, 2007 NCEO Employee Ownership Update is online. It provides an update on Using an Auction to Establish Account Value. It also discusses the challenges that the Tribune deal faces:

“The proposed buyout of the Tribune Company by an ESOP and Sam Zell could possibly be derailed if certain credit covenants are not met. A stipulation in the credit agreement requires that the ratio of indebtedness to the trailing four quarters of EBITDA cannot exceed 9 to 1. Lower-than-expected reported earnings have made that target harder to meet, although the company does have substantial assets it either plans to sell (including the Chicago Cubs, which reportedly have already lured $1 billion offers) or could sell. The offer for the shares is at $34, but, as of July 24, the market price had fallen to $27.62, indicating investors are becoming somewhat wary over the chances the proposal will go forward. Zell does have an option to pull out of the deal. However, most observes still believe that, barring even worse news, the deal will proceed.”

Healthier Employees?

A blog post discusses how ESOPs may create healthier employees. In addition to reading the post and related the article, I also reviewed some excerpts from The Impact of Inequality: How to Make Sick Societies Healthier. While the author of the book is suggesting that employee ownership gives employees more control over the company, and therefore more control over their health, it does not appear that he has fully embraced the benefits of employee ownership.

16 Tips to Building a Company Culture

Another blog post discusses an article with tips to building a strong company culture. Here are the “16 (Cost-Effective) Ways To Grow A Company Culture That Helps You Keep Your Keepers”:

1. “Don't misrepresent your culture.”
2. “Learn the rules of engagement.”
3. “Cross-pollinate your culture by embracing diversity.”
4. “Be a good corporate citizen.”
5. “Give praise where praise is due.”
6. “Get creative with benefits.”
7. “Be aware of the changing needs of your employees.”
8. “Realize that great employees thrive under great leaders.”
9. “Conduct "stay" interviews regularly.”
10. “Create the kind of environment where people can do their best work.”
11. “Help employees to achieve work/life balance.”
12. “Insist that your employees take vacations.”
13. “Create an environment of trust between employer and employee.”
14. “Rid your pasture of weeds.”
15. “Use internship and mentoring programs to grow and nurture new talent.”
16. “Take a seasonal approach to showing employees you care.”