|
EFES NEWSLETTER - JANUARY 2011
Controversy
about employee ownership in the UK
John Lewis Partnership was usually described as the best
reference regarding employee ownership in the UK. How does
it work really? Across government a siren call is sounding,
promoting the John Lewis model of employee ownership as
a way of modernising public services. "But John Lewis
is not what it purports to be", an expert said. "It’s
not an employee run company. The interesting thing when
one looks carefully at the documents that lay behind that
structure it is very difficult to discern who it is that
has responsibility for the appointment and removal of directors
of the trustee company. In a sense that is almost a self-serving
oligarchy in that it’s the board of directors on the company
that appear on the panel that appoint and remove the directors
and the shareholders of the trust." More
New study shows broad-based Stock Option Plans improve performance
One of the most comprehensive and convincing studies to
date on the effect of broad-based option plans on company
performance was recently released. Looking at non-executive
options and the subsequent firm operating performance as
measured by the firm's industry adjusted ROA, the authors
found that "both the existence of a broad based option
plan and the implied incentives of an option plan exert
a positive effect on firm performance..." By contrast,
companies with grants focused on executives did worse. More
Press review
Much new information about employee ownership in December
2010, with 1.163 articles in this press review (on which
397 involving stock options and 335 about workers' cooperatives).
We made a selection of 38 remarkable articles in 12 countries:
Arab Emirates, Canada, France, Germany, Ireland, Kenya,
Pakistan, Poland, Spain, UK, USA, South Africa.
Canada: The last 15 years have seen more business
owners using ESOPs to make a gradual exit. Global ground
engineering and environmental services company Golder Associates
employs 7.000 people. Employee ownership is one aspect of
the Golder culture. The ownership mentality has been around
since the company’s inception in 1960 and is one of its
major strengths to this day.
Spain: Tax incentives 2011 for employee share ownership
in Gipuzkoa.
France: New employee share plans for AXA, Vallourec
and Vinci. Employee share ownership celebrates its annual
"Grand Prix". Employee buyouts gaining in popularity,
mostly through workers' cooperatives, and using new dedicated
investment funds.
Ireland: It's not the 1,700 staff at Google’s European
headquarters in Dublin that have seen surprising good financial
news – it has now emerged that workers in Eircom, ESB (the
state’s largest electricity provider), Aer Lingus and others
are all to receive extra pay through share schemes and share
options.
Kenya: In Kenya, most listed companies have formed
ESOPs as a motivation for employees.
Pakistan: After the registration of seven new Benazir
Employees Stock Option Scheme (BESOS) Trusts, the Privatization
Commission has so far registered 49 trusts in the State
Owned Entities, which will benefit more than 200.000 workers.
Poland:
The new privatisation programme seems to be a fiasco.
UK: Many comments about the John Lewis way. How does
it work really? Across government a siren call is sounding,
promoting the John Lewis model of employee ownership as
a way of modernising public services. "But John Lewis
is not what it purports to be. It’s not an employee run
company…", says an expert.
USA: "Twelve Bogus Reasons Not to Do an ESOP
(and Seven Good Ones)" - One of the most popular articles
about ESOPs, from the National Center for Employee Ownership…
Joseph R. Blasi, the world's leading authority on employee
ownership, has been named the inaugural holder of the Robert
Beyster Professorship of Employee Ownership at Rutgers'
School of Management.
New case studies highlighting employee-owned companies.
South Africa: The first of Gold Fields’ Black Economic
Empowerment transactions will entail the establishment of
an employee share ownership plan to transfer a 10,75% stake
in the company to employees. In terms of South African legislation,
mining companies are required to ensure at least a 26% BEE
ownership level by 2014.
The full press review is available
on:
http://www.efesonline.org/PRESS
REVIEW/2010/December.htm
|
A
political roadmap for employee ownership in Europe
The
EFES needs more members. Download the EFES membership form
What's
new on the EFES website?
EFES
NEWS distribution: 200.000
|
