Sharing the risk at expense of power : Paying wages in equity to face the COVID-19

• Autores: Aubert, Nicolas, Córdova, Miguel
• Formato: documento de trabajo
• Fecha de Publicación: 2020
• Institución: Pontificia Universidad Católica del Perú
• Repositorio: PUCP-Institucional
• Lenguaje: inglés
• OAI Identifier: oai:repositorio.pucp.edu.pe:20.500.14657/173261
• Enlace del recurso: http://repositorio.pucp.edu.pe/index/handle/123456789/173261
• Nivel de acceso: acceso abierto
• Materia: COVID-19 (Enfermedad); Coronavirus; Financial crisis; Equity payment; Recession; Cashflow; Firm ownership; http://purl.org/pe-repo/ocde/ford#5.02.04

This paper aims to discuss which basic implications firms need to be aware of if they decide to include equity shares as a part of salary payments in order for them to tackle financial risks due to the COVID-19 crisis, benefiting with better liquidity. We discuss this alternative from the strand of potential financial benefits, but also include a power perspective, emphasizing how firms could share with employees their decision-making processes as well as a part of their position of traditional hegemony. We concluded that firms’ decision regarding this financial alternative fits into a short-term benefit and at the same time threats a long run position of power.