EFES NEWSLETTER - MAY 2018
Discriminations in voting rights
long term investors, employee shareholders benefit from
positive discrimination in France since 2014: Voting
rights are usually doubled, which means that when employee
shareholders hold for instance 6%, their voting rights
count for 12%. This contributes to the growing involvement
of employee share ownership in corporate governance
in France. Employee shareholders are represented in
the Boards of Directors in 33 of the largest French
At the contrary, employee shareholders' voting rights
suffer negative discrimination in six European countries:
Denmark, Sweden, Finland, The Netherlands, Switzerland
cases here are companies issuing two classes of shares,
A-shares with 10 votes and B-shares with 1 vote. Controlling
owners hold high voting shares but employee share plans
are based on low voting ones. This way, employee shareholders'
voting rights are severely discriminated, in up to 37%
of large companies in Sweden. Employee shareholders'
voting rights are generally reduced by 30% to 60% in
Denmark and Sweden, in comparison with the one-share-one-vote
We have a selection of 28 remarkable articles in 9 countries
in April 2018: Austria, Belgium, Czechia, Finland, France,
Hungary, Italy, UK, USA.
Austria: Employee share ownership has become increasingly
important in recent years and it is further expanding, particularly
through employee ownership foundations.
Belgium: Plunge of employee share ownership - Belgium
stands out strangely in Europe.
Czechia: New record year for employee share ownership
Finland: Following the new legislation in 2011, the
number of Personnel Funds has doubled.
France: Joseph Blasi & Douglas Kruse: Today's youth
reject capitalism, but what do they want to replace it? More
and more family businesses decide to open their capital to
employees. From some workers cooperatives in France. Waiting
for the new "PACTE" law: France is going to double
its employee share ownership by 2030, with 10% to be held
by the employee shareholders.
Hungary: The new legislation of 2015 helped to revive
employee share ownership in Hungary.
Italy: ESOP-style scheme for Alcoa in Sardinia, with
5% held by employees and representation on Board.
UK: New employee ownership trusts. Waitrose woes dent
the halo of employee ownership
USA: Joseph Blasi & Douglas Kruse: Today's youth
reject capitalism, but what do they want to replace it? Numerous
new firms turning to ESOPs.
The full press review is available
political roadmap for employee ownership in Europe
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