If the private benefits of control are high and management owns a small equity stake, managers and workers are natural … allies. There are two forces at play. First, managers effectively transform employees into a “poison pill’’ by signing … squires’’ for the incumbent managers, lobbying against hostile takeovers to protect the high wages enjoyed under incumbent …

If management has high private benefits and owns a small equity stake, managers and workers are natural allies against … a takeover threat. Two forces are at play. First, managers can transform employees into a "shark repellent" through long …''\ for the incumbent managers: to protect their high wages, they resist hostile takeovers, by refusing to sell their shares …