FNF Employee Stock Purchase Plan

Another excerpt from the 2011 FNF Proxy Statement:

"Employee Stock Purchase Plan

We sponsor an Employee Stock Purchase Plan, which we refer to as the ESPP, which provides a program through which our executives and employees can purchase shares of our common stock through payroll deductions and through matching employer contributions. Participants may elect to contribute between 3%  nd 15% of their salary into the ESPP through payroll deduction.
At the end of each calendar quarter, we make a matching contribution to the account of each participant who has been continuously employed by us or a participating subsidiary for the last four calendar quarters. For most employees, matching contributions are equal to 1/3 of the amount contributed during the quarter that is one year earlier than the quarter in which the matching contribution is made. For officers, including our named executive officers, and for employees who have completed at least ten consecutive years of employment with us, the matching contribution is 1/2 of such amount. The matching contributions, together with the employee deferrals, are used to purchase shares of our common stock on the open market."

I think the loyalty of an employee who has ownership in the company can be swayed to the protection of their own net worth.  I would think that there would be a conflict of interest.  If a claim is filed, found to be valid and then paid it would reduce the overall profitability of the company.  If a claim is found to be valid but is then valued at $0 the value of the profitability of the company and consequently of its stock is higher than if the claim was valued at a greater amount.

At least this makes sense to me.

This was actually one of the things that we asked for information on that was not provided.  Thank goodness for the internet!!!