The United Airline Bankruptcy and the Future of Employee Ownership

7 Pages Posted: 24 Sep 2005

See all articles by Jeffrey N. Gordon

Jeffrey N. Gordon

Columbia Law School; European Corporate Governance Institute (ECGI)


The collapse of the UAL employee stock ownership experiment in UAL's bankruptcy does not demonstrate the inevitable failure of the institutional form any more than the collapse of Enron shows the impossibility of the large publicly held corporation. Rather, UAL suffered from particular design flaws in its stock ownership plan and, more seriously, the absence of complementary institutions focused on the distinctive problems of employee-owned firms.

Suggested Citation

Gordon, Jeffrey N., The United Airline Bankruptcy and the Future of Employee Ownership. Employee Rights and Employment Policy Journal, AALS Issue on Employee Stock Ownership After Enron, Vol. 7, p. 227, January 2003, Available at SSRN:

Jeffrey N. Gordon (Contact Author)

Columbia Law School ( email )

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European Corporate Governance Institute (ECGI)

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