der spiegel 1
1) Why has the unique ownership structure of Spiegel been created? What problem was it designed to solve? Which problems have been created? How could the problems be solved?
In late 60s particularly in Germany and France there was sociopolitical upheaval and leftist student rebellion against government and perceived authoritarianism. First, in Germany the rival magazine Der Stern witnessed a similar uprising where staff achieved to stop a deal that management of the company was about to engage. Editorial staff gained an “editorial statue” that achieved very broad powers in the management. Inspired by Der Stern’s model, Der Spiegel staff sought a similar statue. Rudolf Augstein who was the 100% owner of the magazine at that time, decided to give employees 50% ownership of the company. A new company has been founded called MKG which contains all the editorial staff. That way, employees would share the profits and participate in key decisions of the management like selection of editor in chief but they would also understand better the business aspects of publishing and no longer seek to limit the freedom of action of the appointed and installed executives.
Rudolf Augstein was principally a journalist rather than a businessman. He wanted to write and publish and Der Spiegel was there to work for his journalistic ideas. Managing the magazine was of secondary interest to him.
This structure of employee ownership created a high degree of identification with Spiegel as well as stability. However it created some problems in the decision-making process. Previously Rudolf Augstein had the veto and approval right. All decisions required a super majority of 76% of all votes cast. During his time an exception was made for editor in chief and the editorial direction which could be approved with 75% thus making it possible for Augstein and MKG to decide without G+J(printing company that owns 25% of the company). As long as he lived he could also push through everything he
In late 60s particularly in Germany and France there was sociopolitical upheaval and leftist student rebellion against government and perceived authoritarianism. First, in Germany the rival magazine Der Stern witnessed a similar uprising where staff achieved to stop a deal that management of the company was about to engage. Editorial staff gained an “editorial statue” that achieved very broad powers in the management. Inspired by Der Stern’s model, Der Spiegel staff sought a similar statue. Rudolf Augstein who was the 100% owner of the magazine at that time, decided to give employees 50% ownership of the company. A new company has been founded called MKG which contains all the editorial staff. That way, employees would share the profits and participate in key decisions of the management like selection of editor in chief but they would also understand better the business aspects of publishing and no longer seek to limit the freedom of action of the appointed and installed executives.
Rudolf Augstein was principally a journalist rather than a businessman. He wanted to write and publish and Der Spiegel was there to work for his journalistic ideas. Managing the magazine was of secondary interest to him.
This structure of employee ownership created a high degree of identification with Spiegel as well as stability. However it created some problems in the decision-making process. Previously Rudolf Augstein had the veto and approval right. All decisions required a super majority of 76% of all votes cast. During his time an exception was made for editor in chief and the editorial direction which could be approved with 75% thus making it possible for Augstein and MKG to decide without G+J(printing company that owns 25% of the company). As long as he lived he could also push through everything he