A positive development in corporate culture in recent times has been companies increasingly extending business ownership to employees. The latest name to join the bandwagon is alternative asset behemoth Blackstone (NYSE:BX). The company plans to expand equity ownership in future buyout deals to its employees, marking a significant shift towards employee ownership.
Blackstone’s Move
According to Bloomberg, BX is introducing an equity-linked program that will cover nearly 18,000 employees at Copeland, a climate technology company providing heating, cooling, and cold storage solutions. Additionally, Blackstone intends to implement a similar strategy to distribute ownership among a wider group of workers in its new private equity investments.
While Blackstone has previously invested in companies offering equity ownership to employees, this new initiative represents a more systematic and targeted approach. Such efforts by companies also serve as a means of attracting talent and enhancing employee engagement and morale.
Part of a Wider Industry Trend
Notably, other prominent players in the investment sector, including KKR (NYSE:KKR), Apollo Global, TPG, and Silver Lake, have also implemented similar strategies. According to the Wall Street Journal, an announcement from Blackstone detailing its initiative is expected later this week.
Interestingly, other companies are also taking steps to enhance employee ownership. Yesterday, Lam Research (NASDAQ:LRCX), a provider of wafer fabrication solutions, announced a 10-for-1 stock split aimed at enabling a larger portion of its workforce to participate in its employee stock plans.
What Is BX Stock Price Target?
Over the past year, Blackstone’s share price has rallied by nearly 55%. Overall, the Street has a Moderate Buy consensus rating on the stock, alongside an average BX price target of $130.58. This indicates that Blackstone shares may be fairly priced at current levels.
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