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EFES NEWSLETTER - SEPTEMBER 2026
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The
EOT scheme in Germany
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The Employee Ownership Trust (EOT) scheme is
designed to facilitate the transfer of businesses to
employees. Of course, this is mostly about SMEs. It
was successfully used in the UK from 2014.
Germany, like many other European countries, is facing
the same ownership transfer challenges, - generations
are passing and new owners have to take the baton from
their predecessors.
When family transfers are not an option, transferring
a business to employees can be the best solution.
Germany has the right legal vehicle to replicate the
EOT scheme. This legal vehicle is the Stiftung.
Some objections have already been raised
on this subject, but they were quickly proven to be
wrong.
In fact, many German companies have been under Stiftung
ownership for a long time.
We are available for any question or comments about
these facts.
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News
from the disaster
in London
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Over
the past ten years, employee ownership in SMEs has seen
extraordinary growth in Great Britain. We were rapidly
moving towards a situation where one in ten SMEs would
be employee-owned. In most cases, employees become 100%
owners of their company. Without having to spend a single
penny of their own money. This success was due to the
introduction of the Employee Ownership Trust
(EOT) mechanism in 2014.
And
then... Rachel Reeves, the new Chancellor of the Exchequer
in the UK government decided to retax business transfers
to employees. Instead of a 100% tax exemption on capital
gains when transferring a company to employees, this
exemption has now been cut to 50%. The effect is dramatic.
There
is only one way to avert disaster. It is essential
to reinstate the 100% exemption on capital gains relating
to the sale of a company to employees.
The
complicity of the Employee Ownership Association
in this underhanded political maneuver is being observed
with curiosity. Its true motives remain unclear.
More
info
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Press
review
A
selection of 23 remarkable articles in 7 countries in July
and August 2026: Canada, France, India, Italy, Luxembourg,
United Kingdom, USA.
Canada: Employee Ownership Trusts get a key boost.
France: New employee share plans for Société Générale
and for Engie.
India: Tax relief for employee stock options in startups.
Italy: An increasing number of large companies are
launching employee share plans to foster employee loyalty
and attract talent. An overview of broad-based employee share
ownership plans.
Luxembourg: Luxembourg introduces new tax regime for
startup stock option plans.
UK: New employee-owned trusts fall to four-year low.
The number of new employee‑owned businesses receiving
tax clearance fell to a four‑year low, according to
data obtained by Price Bailey accountancy firm. Difficulties
continue to mount for John Lewis Partnership.
USA: Wanted: Brain trust to support Employee Ownership
Trust (EOT) transactions. Tsunami announcements arrive in
waves - even when they are "silver", - this month
with one version Kentucky-style and another, more classic
one from the Project Equity lobby.
The full press review is available
on:
https://www.efesonline.org/PRESS
REVIEW/2026/August.htm
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A
political roadmap for employee ownership in Europe
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