Cooperatives are a unique organizational model where workers collectively own the company and share in the profits. Unlike the traditional corporate structure — where ownership is often concentrated among founders, board members, and outside investors — cooperatives emphasize broader participation. In conventional corporations, the board’s duty to maximize short-term shareholder returns can sometimes overshadow the goal of sustainable, long-term growth.

Traditional ownership models also tend to create a bottom-up flow of revenue, where the bulk of profit generated by employees accrues to the small group of shareholders at the top. Over time, this dynamic may contribute to wage stagnation and lower employee retention rates.

At Saipter Corporation, we believe that aligning the long-term success of the company with worker interests creates a stronger foundation for sustainable growth. By giving employees a meaningful voice in corporate governance, we aim to harness the day-to-day expertise of those most familiar with operations. Research suggests that cooperative and employee-owned companies often experience higher retention rates and improved company performance.

¹Bureau of Labor Statistics, 2022
²Democracy at Work Institute, 2021
³Payscale Corporate Reports, 2021
⁴National Center for Employee Ownership (NCEO), 2020
⁵U.S. Federation of Worker Cooperatives, 2021

Additionally, academic studies have shown that in large, traditionally structured corporations, minority shareholders often struggle to influence governance meaningfully, despite protections under securities laws.

Currently, publicly traded cooperatives are rare or virtually nonexistent. However, Saipter Corporation believes that adopting certain cooperative principles — while still operating within the regulatory framework for public companies — could create mutual benefits for shareholders across different voting classes.

Texas corporate law, for instance, discourages the issuance of non-voting shares unless there is a clear trade-off and public benefit. In line with this principle, Saipter has vested dissolution rights (i.e., rights to a share of the company’s assets if it winds up) with the non-voting class of shareholders. This measure aims to balance interests and mitigate concerns regarding potential insider advantages.

By giving dissolution rights to non-voting shareholders, Saipter further discourages short-term thinking and insider-driven liquidation. Worker-owners remain incentivized to build a profitable, sustainable company for the long term, while non-voting public shareholders are protected in a meaningful way.

Furthermore, a structure that maintains the ability to conduct follow-on offerings without substantial dilution can help the company raise capital when necessary. This setup encourages management to prioritize steady growth and sound financial stewardship, ultimately working to maintain — and potentially enhance — the company’s market value over time.

While future performance cannot be guaranteed, research suggests that structures designed around sustainability, employee engagement, and long-term incentives can produce competitive returns comparable to traditionally structured corporations.