EFES NEWSLETTER - JANUARY 2023
performance and employee share ownership
Social and Governance performance is a key point for
A new research work identifies a very strong link between
a company's ESG performance and employees investing
in employee share plans.
After ESG incidents, employees are less likely to invest
and they invest smaller amounts in their company’s stock.
Incidents in the “Social” category, especially those
related to working conditions and local incidents, are
the ones that affect these investment decisions the
most. Pecuniary motives are unlikely to explain this
finding. Overall, the results suggest that ESG policies
directly impacting the well-being of employees affect
employee satisfaction and loyalty the most.
results indicate that employees do not react according
to purely financial motivations. Today, employees are
increasingly concerned by the corporate social responsibility
practised by their companies.
Employees are also highly sensitive to ESG policies
when they invest in their employer’s shares. However,
of the various aspects of ESG policy, those directly
associated with working conditions have the strongest
impact for employee shareholders.
The schizophrenia sometimes attributed to employee shareholders
does not stand up to examination of the facts.
the full study
have a selection of 34 remarkable articles in 7 countries
in December 2022: Belgium,
France, Morocco, Romania, Slovenia, UK, US.
Belgium sees only advantages in employee share ownership.
France: New employee share plans for Believe, for Renault,
for Alstom. A new workers' cooperative to save Scopelec, the
largest workers' cooperative in France? Bad blow for employee
shareholders at EDF. The Socialist Party wants to make employee
share ownership compulsory in all French companies.
Morocco: Growth of employee share ownership in Morocco.
Romania: Employee share plans are still a rarity in
Slovenia: Call for help from Domel, the largest employee-owned
company in Slovenia against the threats of the new government.
UK: Labour Party proposal of a new employee share
ownership schemes bill, which would give low-income workers
preferential access to schemes. Every day a new SME is transferred
to employees. This month, among others, the cases of: Leader
Marketing Partnership, Inspired Cycle Engineering, Creed Communications,
Camargue, YesTax, Bisley, Peter Ambrose, Futureserv, Franklin
Ellis Architects, Bennett Oakley Solicitors, Dent Instrumentation,
Sledge, SWM Partners.
USA: Private Equity is this part of the investment
world that everybody loves to demonize.
The full press review is available
political roadmap for employee ownership in Europe
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