A pro-worker experiment in private equity

This episode of Planet Money examines an experiment within private equity that explores worker ownership. It centers on Pete Stavros's efforts at KKR to give employees equity in the companies they acquire, challenging the traditional model of job cuts and degradation of product quality. The first experiment at Capital Safety didn't yield expected results due to lack of communication. A later success story at GSI, where landslide repairs worker Mike Pavelko received a payout of approximately $250,000 after KKR sold the company, transforming his life. While worker ownership doesn't always guarantee success, Stavros's work has led other private equity firms to explore similar programs. The effectiveness seems to depend on empathetic leadership that values workers beyond mere productivity gains.