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European
Top Executives massively buying own company shares
With
the fire sale of shares on the stock exchange, a strong
phenomenon has developed in recent weeks: European Top
Executives are massively buying their own company shares.
This
can be seen in the hundreds of releases of "insider
dealing". In Italy roundup of Eni, Enel, Mediobanca,
IntesaSanpaolo, Indesit and dozens of others. Top Executives
buying millions of shares. The same in Germany with Metro,
BASF… In Sweden with Husqvarna… In France Air Liquide,
Alcatel-Lucent ... Same at Barclays, Shell... All major
companies are affected.
In
two words: The short-termists sinking into panic, long-term
investors and Top Executives at first take the opportunity
to buy cheap.
What
about the ordinary employee? What's good for Executives
should be good for employees too.
Unfortunately,
any legislation promoting a simple and convenient employee
ownership model is still lacking in too many European countries.
What
are the worst performers of the European class in this area?
Portugal, Italy, Greece, Spain. Yes, we find here the same
list of countries that are stigmatized in the crisis of
Euro interest rates. These countries need structural changes,
including the development of employee share ownership. Also
in the back of the classroom: Belgium, The Netherlands and
most Central and Eastern European countries.
The
consequence of this lack of legislation: In all these countries,
only 10 to 15% of employees are shareholders of large companies,
compared to 30% on average in Europe. For good students,
it rises to 25, 30 or 50%. These are Norway, Switzerland,
Finland, Great Britain, Sweden, France. It is remarkable
that over the last10 years, employee share ownership has
become an ingredient of the "Nordic model".
Recently,
the European social partners have launched an appeal to
governments. The European Economic and Social Committee
took this initiative. The Committee brings together European
business representatives, trade unions and civil society.
The opinion is clear and unambiguous.
Aimed
at large enterprises, each European country should introduce
into its legislation a "simplified model" of employee
share ownership, making its development stronger and easier.
Aimed
at small and medium sized enterprises, each European country
should encourage the transfer of business to employees,
following the example of what the U.S. has established since
1974 with the "ESOP model", allowing employees
to buy their business without paying a cent, with a long-term
credit.
The
strength and consistency of employee share ownership will
be more and more one of the factors and one of the characteristic
elements of good governance in European companies, of better
economic performance and regained trust.
The
opinion of the European Economic and Social Committee is
available on page http://www.efesonline.org/EESC/EN.htm
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