EFES NEWSLETTER - JUNE 2019
USA is widening the gap
Studies are proliferating about employee share ownership
in the US, bringing useful information for everyone in
the world, including Europe.
The 2018 administration of the US General Social Survey,
a long-standing survey of the US work force, included
a segment on employee ownership.
It found that 20% of private-sector workers in the USA
have some level of ownership in the companies where they
work, including 11 million who participate in ESOPs and
25 million with some other form of stock-based compensation.
This is 36 million in total compared to 9 million in Europe.
The survey found that among those workers that hold company
stock, the average value of that stock was $75,205.
In total $2,700 billion compared to 400 billion € in Europe.
The study's author, professor Douglas Kruse, noted that
employee-owners are "six times less likely to be
laid off." The study found that, over the last year,
the surveyed non-employee-owners were laid off at a rate
of 3.7%, versus 0.6% for the employee-owners. Among companies
with employee engagement programs, the study found that
companies with generous employee ownership plans had a
rate of turnover in general (i.e., including voluntary
turnover) of 6%, far less than the 14% rate for those
with no stock plan.
This reality is far from the idea which was prevailing
in the Juncker Commission in Brussels, that employee share
ownership would be too risky and bringing additional uncertainty
The truth is that employee share ownership brings more
wealth and stability. More
We have a selection of 41 remarkable articles in 7 countries
in May 2019: Belgium, Finland, France, Germany, India, United
Belgium: EASI is one of the few employee-owned companies
Finland: Finnish Personnel Funds make happy employee
France: The new Pacte Law was finally voted, representing
a first step towards doubling employee share ownership in
France by 2030. Employee share ownership helped to put an
end to the governance dispute at EssilorLuxottica. New employee
share plan for Valeo, for Europcar, for Veolia Environnement,
for SEB, for Total. CGT Union requests IPO and employee share
plan for Verralia. The number of workers' co-operatives continues
to increase in France.
Germany: Why so few employee shareholders in Germany?
Multiple voices calling for new policy choices.
India: Going to make employee stock option plans more
attractive for startups.
UK: BT Group adopts new employee ownership model for
100,000 staff. New firms turning to the Employee Ownership
Trust scheme, with among others Richer Sounds, a first company
of significant size.
USA: New study: Employee ownership narrows gender and
racial wealth gaps. 72% of Republicans and 74% of Democrats
agree on this: They prefer to work for an employee-owned company.
Celebrating Michael Keeling, employee ownership champion who
retires from the Presidency of the ESOP Association.
The full press review is available
political roadmap for employee ownership in Europe
EFES needs more members. Download the EFES membership form
new on the EFES website?