Employee Participation in Employee Share Ownership: an Evaluation of the Factors Associated with Participation and Contributions in Save As You Earn Plans

摘要

The factors associated with participation in and contributions to UK Save As You Earn (SAYE) share option plans are examined. In the absence of a UK literature, the American literature on subscriptions to 401(k) pension plans is drawn upon to develop hypotheses. In addition to the demographic factors (income, age, sex etc.) identified in that literature, the role of attitudinal factors in influencing employee participation and contributions is also investigated. The data source is over 2600 employees in three large UK companies with well-established SAYE plans. In common with the 401(k) literature, income and age are found to be strong determinants of both participation and contribution levels. Views about the plan are more important than attitudes to the firm in influencing contributions, whilst participation rates are negatively related to commitment (contrary to predictions). These findings are shown to have implications for companies, policy-makers and researchers.