When skin-in-the-game hurts

MICROSOFT was a pioneer in establishing the modern form of employee ownership. In 1987, it introduced a programme to let staff buy the company’s stock at a discount.

As Microsoft climbed through the ranks of the corporate world to become one of the most valuable companies today, that arrangement made millionaires out of many early and long-term employees.

Share option plans have proliferated since then as a way to motivate workers. They spread like wildfire throughout Silicon Valley, and they’re catching on in South-east Asia’s young startup ecosystem.