Employee stock ownership gives a voice to employees (in terms of shareholding and potential board membership) and therefore may have a major impact on corporate governance. From this perspective, employee stock ownership may be a powerful mean to protect CEOs from market for corporate control and dismissal threat. In this paper, we examine the relationship between employee stock ownership and CEO entrenchment. We use a comprehensive panel dataset of the major French listed companies from 2009 to 2012. Our results show that employee stock ownership exhibits a curvilinear relationship with CEO entrenchment measured by CEO age and tenure. Board employee ownership representation has a mixed impact on CEO entrenchment.
