NEWSLETTER - NOVEMBER 2007
share ownership in business succession planning
It is known that ESOP – one of the most typical employee
ownership scheme in USA, was particularly designed for business
succession. In Australia, the Australian Employee Ownership
Association (AEOA) has been vigorously promoting the role
that employee share ownership can play in business succession
planning. To support the development of employee share ownership
in the SME sector, the AEOA has set up a special "resources"
page to assist business consultants with advising on ESOP-based
business successions and the expansion of employee equity
in private companies. The articles, case studies and
web-links appearing on this page will be useful for informing
retiring business owners wanting to transition their business
to their employees as part of a succession plan, as well
as for those wanting to implement shared ownership of
private businesses generally. See
this new resources web-page
Employee Ownership Blog
Creation of the Employee Ownership Blog in USA. The Employee
Ownership Blog is dedicated to fostering an open discussion
about employee ownership in the US while keeping readers
informed of new developments on the legislative front and
linking to relevant articles. Access
to the blog
new information about employee ownership in October
2007, with 1.722 articles in this press review (on which
1.027 involving stock options and 182 about workers'
cooperatives). We made a selection of 73 remarkable
articles in 12 countries: Australia, Austria, Germany, France,
Ireland, India, Israel, Italy, Morocco, UK, USA, South Africa.
"Executive salaries had become so large they were grotesque"
- Australia's most senior Catholic, Cardinal George Pell.
Austria: Vice-Chancellor Molterer pleads for
employee share ownership.
France: EADS scandal relaunched violent debates on
executive salaries and stock options (500 articles!). Stock
options have to be forbidden (socialist proposal). A higher
taxation was finally voted on stock options to cover social
security expenses. Annual survey on employee savings: It
is now more than 100 billions Euro for 11 millions employees.
Which role for hedge funds? Safran: Employee shareholders
playing a key-role.
Germany: A new study confirms Germany's backwardness
regarding employee share ownership. On the other hand, the
government's working group held its first meeting and the
big coalition will probably finalize a new legislation for
the end of this year.
Ireland: Early Christmas for Eircom employee shareholders.
The new tax on employee stock options becomes reality after
months of suspense. Edelweiss Capital Limited IPO opens;
its model of high level of employee ownership inculcates
a strong culture of partnership, ownership, commitment,
and entrepreneurial spirit. Air India will offer employee
stock options to all its 33,000 staff within a few months
as it gets ready for an initial public offer. Employee Stock
Option (ESOP) scheme is emerging as a great retention tool
for the hospitality sector.
Chancellor Alistair Darling will simplify the Capital Gain
Tax. However this could mean higher taxation for employee
share schemes and for transfers of businesses, in contradiction
with the relief created by Gordon Brown himself some years
ago as an incentive for enterprise and employee ownership.
Large debate. On the other hand "FTSE-100 bosses take
home 100 times more than average employees" – questions
about the salaries of the top executives (and stock options
!) – just like in France or the US.
Israel: National bus company was set up in 1933 as
a workers' coop.
Italy: Questions about Banca Popolare di Milano -
key employee shareholders of BPM, effectively controlling
the bank with just 2 pct of capital.
South Africa: Sasol prepares the single largest BEE
deal in the South African economy. Sasol's executive director
declared that "the inclusion of white employees at
lower levels is a common industry trend in a number of
large BEE transactions announced recently, and we have engaged
all our trade unions in this part of the transaction".
Chicago Tribune bought through an ESOP: Sam Zell tells why.
Could the UAW buy General Motors: discussion continues.
Much questions about stock options and executives pay: Stock
Options spur risky CEO behaviour - Fallacy of stock options
- Maybe it's time to restructure executive stock options.
On the other had, the Securities and Exchange Commission
gives final approval to the new auction method for valuing
employee stock options. Finally some interesting examples
of employee-owned companies: Eudora Nursing confirms that
being employee owned makes the care being provided more
personal. The World-Herald is the country's only employee-owned
major daily newspaper. Monroe Publishing tells what makes
it special to work for a cool company.
The full press review is available
This is how much an employee held in 2006, in average, in
KarstadtQuelle 202 €
Stockmann 3.453 €
PinaultPrintemps 1.015 €
Tesco 2.811 €
Morrison 306 €
JohnLewis 32.703 €
Auchan 4.789 €
ModeloContinente 0 €
adidas-Salomon 3.820 €
Thomson 4.479 €
Indesit 214 €
PhilipsElectronics 1.443 €
Electrolux 376 €
Gorenje 2.185 €
Praktiker 0 €
Wolseley 1.784 €
Kingfisher 89 €
Boots Group 290 €
H&M 0 €
Marks&Spencer 6.861 €
Inditex 0 €
Kesko 7.046 €
Next 1.950 €
Delhaize 747 €
Colruyt 46.747 €
Carrefour 1.032 €
Casino 757 €
Rallye 0 €
Ahold 52 €
Sainsbury 284 €
UBS 87.000 €
Total 47.000 €
Novartis 48.000 €
Mondragon 54.000 €
DeutscheBank 61.000 €
SocGen 38.000 €
BNPParibas 30.000 €
CréditAgricole 48.000 €
AXA 27.000 €
Bouygues 23.000 €
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