EFES NEWSLETTER - OCTOBER 2020
million employee shareholders in the ESOP model in the
US alone. Millions of employee shareholders in small
and medium-sized businesses there, almost nothing here.
Prosperity for them, peanuts here.
But what is really American about the ESOP model?
Is a Management Buy Out (MBO) an exclusively American
phenomenon? Certainly not, it's finance, it's universal.
Even in France.
Is a Leveraged Buy Out (LBO) an exclusively American
phenomenon? Certainly not, it's finance, just as as
two and two make four, it's universal. Even in France.
Is a fund or foundation where shares are held on behalf
of employees an exclusively American phenomenon? Certainly
not, it's universal. Even in France.
a shareholder who sells all or part of his shares to
a foundation an exclusively American phenomenon? Of
course not, it's happening everywhere. Even in France.
Are pension supplements deductible from corporate profits
an exclusively American phenomenon? Certainly not, they
are everywhere. Even in France.
Is a foundation where shares held on behalf of employees
only become available when the employees leave the company
an exclusively American phenomenon? See Austria, even
in very large companies like Voestalpine or Erste Bank.
See Sweden... Is it possible here? Clearly, yes. Even
Thus, these are all the main ingredients of the
All this is possible in Europe as well. Without special
legislation, with existing law. Even in France.
We are reminded that our friends at Equalis Capital
in Paris were justly proud to announce a first a few
years ago, a French ESOP (of the non-leveraged type,
it is true). So, when will the first leveraged ESOP
be launched in France?
The American aspect of the ESOP model is one aspect
and one aspect only: they use it and we don't. Will
we ever be able to stop this foolishness? Even in France?
How can this kind of employee share ownership plan be
introduced in every European country? A group of European
and American experts explain it in
have a selection of 31 remarkable articles in 12 countries
in September 2020: Austria, Canada, Germany, Denmark, France,
Hungary, Ireland, India, Sweden, UK, USA, South Africa.
Employee share ownership should be made much more easy in
Austria, especially for startups.
Canada: If workers own shares in the firms where they
are employed, we can reduce inequality, economists say.
Germany: Fiscal incentives will be doubled from 360
to 720€ annually (still peanuts compared to other European
Denmark: Calling for more employee owned firms in Denmark.
France: Before the corona crisis, year 2019 was excellent
for employee share ownership in France. New employee share
plans for Veolia, for Michelin, for CapGemini, for Albioma,
for Valeo, for Spie.
Hungary: New employee share plan for Dm-Ker.
Ireland: Global Shares announces that it plans major
expansion of its operations.
India: How ESOPs work in India.
Sweden: Swedish unions promoting the Oktogonen employee
share ownership foundation which holds 10% of Handelsbanken.
UK: Several new companies under the control of Employee
Shareholding Trusts. Developments in various directions for
the John Lewis family.
USA: A more equitable and just recovery with employee
South Africa: Express Airways employees form entity
to bid for takeover of the airline.
The full press review is available
political roadmap for employee ownership in Europe
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