Planet Money
NPR
A pro-worker experiment in private equity
SummaryIn this episode, the hosts explore a unique experiment within the private equity industry led by Pete Stavros at KKR. Traditionally, private equity firms focus on cutting costs and jobs to boost short-term profits. Drawing inspiration from his father’s experiences with labor-management tensions, Stavros seeks to align worker incentives with company success by introducing broad-based employee ownership. The narrative follows the evolution of this initiative through two key examples: Capital Safety and GSI. While the initial attempt at Capital Safety was hampered by poor communication and skepticism, it provided crucial lessons on the necessity of transparency. By the time KKR invested in GSI, the program had matured, fostering a culture of pride and engagement that significantly reduced turnover and improved operational efficiency. For many employees, the eventual financial payout was life-changing. Stavros argues that worker ownership is not a guaranteed fix, noting that success often hinges on empathetic leadership rather than just financial structures. While the model is not a panacea for all private equity issues, it has gained traction, with other major firms beginning to adopt similar practices to enhance company performance.
Updated Apr 12, 2026
About This Episode
If your company got bought by a private equity firm, how would you feel? Maybe a little nervous? You might find yourself wondering if there will be layoffs.
And you’d be right to worry about that. Research shows that while private equity ownership can boost a company’s productivity, it does generally result in job cuts.
But one private equity executive is trying to do things a different way – giving workers equity, little cuts of ownership in their own companies. To see if doing so can improve outcomes overall.
On today’s show, private equity is not widely beloved for its societal costs – job losses, product degradation, worsening inequality. And this one guy at this one firm can’t solve all of his industry’s ills. But for the past 15 years, he’s been running a large-scale, real-world experiment to see if giving workers ownership can fit into the big bad world of PE. And maybe lead to more … equity.
Recommended Listening/Reading:
What Do Private Equity Firms Actually Do?
The risk of private equity in your 401(k)
Here's what happens when private equity buys homes in your neighborhood (newsletter)
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This episode was hosted by Mary Childs and Wailin Wong. It was produced by Sam Yellowhorse Kesler. It was edited by Jess Jiang with an assist from Marianne McCune, fact-checked by Sierra Juarez, engineered by Cena Loffredo with help from Jimmy Keeley. Alex Goldmark is Planet Money’s executive producer.
Music: Universal Production Music - "Make Me Want You," "Baby I Surrender," and "Bye Bye Bye"
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