Can private equity firms actually benefit workers by granting them company ownership?

Private equity is often associated with layoffs and inequality. This episode explores a 15-year experiment by one executive who is testing whether giving employees equity in their own companies can improve outcomes and change the industry's reputation.

Private equity firms are frequently criticized for societal harms, including product degradation, worsening inequality, and significant job losses. While research indicates that private equity ownership can increase company productivity, it typically comes at the cost of workforce reductions. This episode examines a long-term, large-scale experiment aimed at challenging this standard model.

For the past 15 years, a single executive has been implementing a strategy of distributing ownership stakes directly to employees. The initiative seeks to determine if worker-owned equity can function within the private equity landscape and potentially lead to more equitable results for those on the front lines of these businesses.

Source: A pro-worker experiment in private equity | Planet Money