Europe's big new boost for employee share schemes - 17 Feb 2011
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Europe's big new boost for employee share schemes
On 17th February
the European Economic and Social Committee published details of a major
new initiative designed to encourage employee share ownership across
Europe.
the European Economic and Social Committee published details of a major
new initiative designed to encourage employee share ownership across
Europe.
The Committee aims
to kick-start the application of Employee financial participation (EFP)
at various levels, such as profit sharing, employee share ownership
schemes and save as you earn schemes. The Committee cites evidence that employee share schemes
and other forms of employee participation result in improved
motivation, increased productivity, improvements in the quality of
corporate management, higher return on capital employed and improved
company credit ratings. It also recognises that tax incentives will be
an effective instrument for promoting the dissemination of employee
share ownership.
to kick-start the application of Employee financial participation (EFP)
at various levels, such as profit sharing, employee share ownership
schemes and save as you earn schemes. The Committee cites evidence that employee share schemes
and other forms of employee participation result in improved
motivation, increased productivity, improvements in the quality of
corporate management, higher return on capital employed and improved
company credit ratings. It also recognises that tax incentives will be
an effective instrument for promoting the dissemination of employee
share ownership.
Is all this just
another example of lengthy Euro-waffle? It seems not. Specific action is
planned to raise awareness of EFP across member states, to identify
obstacles to cross border schemes and to devise solutions.
another example of lengthy Euro-waffle? It seems not. Specific action is
planned to raise awareness of EFP across member states, to identify
obstacles to cross border schemes and to devise solutions.
Additionally, the Committee states that:
- businesses operating across borders should be offered help, in particular in overcoming tax obstacles;
- there should be mutual recognition of share
schemes offered by individual EU states across borders,with a view
eventually to creating uniform tax incentives; - new forms of EFP are to be developed with a view to increasing take up of employee participation;
- examples of best practice will be publicised.
The Committee singles out trust
based employee ownership schemes as example of good practice, citing
several major European companies as examples of how this should be done.
These companies include: AUCHAN (France), HOMAG AG (Germany); PFW
Aerospace AG (Germany); Voestalpine AG (Austria); Oktogonen Foundation
(Sweden); Herend-ESOP (Hungary); Eircom and Aerlingus from Ireland and
Tullis Russell from the UK.
based employee ownership schemes as example of good practice, citing
several major European companies as examples of how this should be done.
These companies include: AUCHAN (France), HOMAG AG (Germany); PFW
Aerospace AG (Germany); Voestalpine AG (Austria); Oktogonen Foundation
(Sweden); Herend-ESOP (Hungary); Eircom and Aerlingus from Ireland and
Tullis Russell from the UK.
But much of the
Committee's focus is on smaller, private companies. In particular, the
statement is clear that the use of employee buyouts as a vehicle for
business succession is to be encouraged. The urgency of this latter task
is underlined by the fact that, over the next ten years, one third of
SMEs in Europe will change hands. This will affect up to 690,000
unquoted companies and 2.8 million jobs every year across the 27 Member
States.
Committee's focus is on smaller, private companies. In particular, the
statement is clear that the use of employee buyouts as a vehicle for
business succession is to be encouraged. The urgency of this latter task
is underlined by the fact that, over the next ten years, one third of
SMEs in Europe will change hands. This will affect up to 690,000
unquoted companies and 2.8 million jobs every year across the 27 Member
States.
If you would
like more information about the topics raised in this articles, please
call The RM2 Partnership on 0208 949 5522 and ask to speak to one of our
advisers.
like more information about the topics raised in this articles, please
call The RM2 Partnership on 0208 949 5522 and ask to speak to one of our
advisers.
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Thanks for posting. I went to the European Economic and Social Committee website, and couldn't find the actual document. It's a big website, so perhaps I missed it. Any chance you could post a link to the actual document?
Thanks very much,
Andrea
Here is a link to notes from the Feb 17 2011 session the last bit talks about confirming the discussions from Oct 20-21, 2010.
469th Plenary Session of the European Economic and Social Committee - Confederation of Industry of the Czech Republichttp://bit.ly/hNRQQK
Here's a link that covers the Oct 2010 meeting and SOC 371.
Intercentar: EESC Own-Initiative Opinion SOC 371 "SOC 371" http://bit.ly/ennRFs