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EFES NEWSLETTER - JUNE 2021
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Employee
Share Ownership and the post-Covid economy
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The
UK is looking for re-imagining employee share plans
for the 2020s.
A
Report was just published with recommendations for broadening
the use of employee share plans as the UK focuses on
the economic recovery post Covid: "A
Stake in Success - Employee Share Ownership and the
post-Covid economy".
It
is due to the Social Market Foundation and to ProShare,
the voice of the employee share plans industry in the
UK.
It
brings some major recommendations, including:
•
Participation in employee share plans has to
be widen, and a key part of this could be redesigning
tax-advantaged share plans to widen their appeal for
those on lower incomes. "Share Incentive Plan rules
should be amended to allow preferential access to free
shares for lower income workers."
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•
"Introducing a new ownership model to encourage
employee share ownership to form a key part of business
succession planning. The US ESOP model should be brought
to the UK, with Employee Ownership Trusts (EOTs) having
an option to become ESOPs where stock is allocated to
individual employees rather than held in a collective
pool. Embracing EOTs and ESOPs as part of entrepreneur
succession planning could help widen employee ownership
over time."
•
"Government needs to provide
support for employee share ownership, making it a key
part of the economic agenda and narrative post-Covid.
It should be a key component not just for a "fair
recovery", but also plans to address the UK economy's
longstanding issue of lacklustre productivity."
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Press
review
We
have a selection of 23 remarkable articles in 10 countries in
May 2021: Canada, France, Germany, India, Italy, Poland, South
Africa, South Korea, UK, USA.
Canada: Federal budget includes commitment to explore
employee ownership.
France: Large French unions promoting employee share
ownership at Suez Group. What the Macron "revolution"
has changed for employee savings.
Germany: Heinrich Beyer explains the new German legislation.
India: Employee stock ownership plan (ESOP) subscription
services for Indian companies.
Italy: The start of a new era for employee ownership
at EssilorLuxottica.
Poland: The new "Polish Deal" confirms the
promise of legislation for employee ownership, against the oligarchs.
South Africa: Employee ownership is an important component
of the government’s economic plans.
South Korea: Stock options for all Kakao employees.
UK: Every day a new SME is transferred to an Employee
Ownership Trust. Employee share ownership could kickstart post-Covid
recovery.
USA: The Big Benefits of employee ownership - The ESOP
is the most common form of employee-owned company today. New
Report on "Economic Recovery and Employee Ownership".
The full press review is available
on:
http://www.efesonline.org/PRESS
REVIEW/2021/May.htm
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A
political roadmap for employee ownership in Europe
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