The purpose of the following matrix is to provide information that relates to country-specific laws and policies on employee ownership. The starting point for this matrix is the 1996-97 Pepper II Commission Report prepared by the Commission of the European Communities. This report provided information that the researchers found concerning European countries. This matrix, however, delves further by providing information across the globe. To achieve our goal, having one resource for information across the globe on state laws and policies concerning employee ownership, we need your help and assistance. Information that you can provide will be placed in the appropriate cells. We thank you in advance for your cooperation on this project.
If you would like to provide information to aid us in filling in this matrix, then we would gladly accept your contribution. To provide information, simply e-mail us. In your e-mail, please include the following information. 1. Country you are writing about. 2. How the information provided is to be entered into this matrix, i.e. tax benefit, specific law, change to an existent piece of legislation, increase in the use of a particular employee ownership scheme, etc. 3. Source of the information. 4. Please provide your name, address, phone number, and professional relation to the information provided.
We greatly appreciate your assistance in our effort to provide the community with information on employee ownership across the globe. With your aid, we will be able to complete this matrix for all countries.
Note: You will not be able to print the matrix effectively from your web browser. We apologize for this inconvenience. To print the matrix from Microsoft Excel, then do the following. 1. Place your pointer/mouse next to the first word in the first cell. Doing that would entail placing your mouse next to the letter "C" in the word "Countries." 2. While holding down the left mouse button, depress the shift key. Hold down the shift key throughout the remainder of these instructions. 3. Release the left mouse button. 4. Scroll down to the bottom right portion of the matrix. Although the cell at the bottom right corner is devoid of any text, go to that cell. 5. Once at the bottom right cell, press and then release the left mouse button. 6. The text within the matrix will become highlighted. 7. Copy the text. One can perform step seven in two ways. A. Go to the edit option--found along the top portion of the screen. Select copy. B. While your mouse/pointer rests atop highlighted text, depress the right mouse button. Select the copy option. 9. If you have Microsoft Excel worksheet open, then go to that application. If not, then open Microsoft Excel. 10. Once you open Microsoft Excel, then paste the text into the worksheet.
The following legend will aid you when reading the matrix:
PS: profit-sharing
SPS: share-based profit sharing
BPS: bond-based profit-sharing
CPS: cash-based profit-sharing
DPS: deferred profit-sharing
ESO: employee share-ownership
SO: stock options
DSO: discretionary share options
ESOP: employee share-ownerships plans
EBO: employee buy-outs
EXSO: executive stock option plans
BSO: broad stock options plans
PSV: privatization stock vouchers
PSG: privatization stock grants
|
Countries
|
Argentina | Australia | Austria | Belarus | Belgium | Brazil | Canada | Chile | China | Croatia | Czech Republic | Denmark | Egypt | El Salvador | Finland | France | Germany | Greece | Hungary | India | Ireland | Italy | Kazakhstan | Kyrgyzstan | Luxembourg | Netherlands | People's Republic of China | Puerto Rico | Poland | Portugal | Russia | Slovak Republic | Slovenia | Spain | Sweden | United Kingdom | USA | Venezuela | Zimbabwe |
|
General Situation
|
favorable; but skeptical, especially on ESO | unfavorable but discussed; PS and ESO prohibited due to wage freeze | government recognized that EO would enhance: new equity capital formation, debt reduction, improved business performance, human resource development, job protection, employee retirement planning and financial growth. | Republic hesitant toward EO. Privatization via citizen vouchers. No incentive via government mechanisms for employees to purchase companies | no discussions | Law does not recognize trusts; Employee Shareholder Association set up. | Privatization efforts in place with employee ownership promoted | Affirmative and discussed with social partners | very favorable and discussed | Favorable except for CPS--appeal to social partners | no discussions | ESOPS played a significant role in 150 privatizations. | Laying the groundwork for employee ownership. | Discussed in National Program | Discussed today; appeal to social partners (1993) | Discussed; government considers initiatives: Law proposal on ESO by parties | favorable and discussed | Favorable depending on circumstances | Minor discussions | On paper, this is the most successful country for EO | Favorable | Favorable | Appeal to Social Partners | Not discussed |
Very favorable & discussed Continuous improvements |
||||||||||||||
|
Legislation:
|
|||||||||||||||||||||||||||||||||||||||
|
specific laws and year of introduction
|
Labor Law 1974 revised: 1994; Income Law 1994 | ESO: (1983, 1986) SO: (1984, 1990) Preferential Share offers (1991 Act) | Employee Share Ownership Program--designed to facilitate equity investment by employees. | As a general rule, discussions of this nature are defined as "labor capitalism" | Social ownership is the word used to define employee ownership. | On SPS and ESO (since 1958) | Personal funds (1990) |
Since 1959 on CPS and since 1967/70 on DPS, SO and; ESO several changes Important improvements in legislation in 1994 |
Some on DPS and ESO; minor changes: 1991-1994 | Some on CPS (1984) and ESO (1987) | Based on US and UK models | Proposed amendments would clarify tax treatments for employee ownership/stock ownership. | Only for ESO, SPS & SO | Some provisions in Civil Code and Workers' Statute | None | In 1994 improved on CPS; BPS & SO on the basis of company saving schemes | Since 1989 privatizations law provides for ESO; PS based on 1969 law | Only general provisions in Workers' Statute & EBO (1986) | Only for profit-sharing funds |
SPS (1978) SO (1980) DSO (1984) CPS (1987) ESOPs(1989) ESO (1978-) In 1991, 1992 and 1994: easing regulation; all schemed improved in 1995: equal treatment for part-time employees |
Leveraged ESOP: employees purchase shares on credit; credit based on the company itself; loan repaid via future earnings of the company. | ||||||||||||||||||
|
tax benefits
|
only for ESO | Rather limited especially for ESO and SO | Some for SPS and SO/ESO | Incentives for personnel funds; none for CPS/ESO | Substantial for both firms and employees; further improved in 1994 | Only for DPS&ESO, minor incentives | For both firms and employees substantial | Considerable improvement in 1995 | No incentives | No incentives | Substantial improvements in 1994 |
Incentives for firms with PS ESO incentives for both firms and employees |
Minor, except for EBO | For employees and firms on payments to the funds |
Substantial for both firms and employees In 1991, 1992, and 1994: increases in tax-relief In 1996 withdrawal of tax-relief for DSOs |
Deduction for principle and interest payments of ESOP loans; deduction for dividend payments; deferral of capital-gains tax. | |||||||||||||||||||||||
|
broad ownership requirements
|
|||||||||||||||||||||||||||||||||||||||
|
ownership tied to pension--yes or no?
|
|||||||||||||||||||||||||||||||||||||||
|
employee voting rights
|
|||||||||||||||||||||||||||||||||||||||
| Diffusion of PEPPER schemes: | |||||||||||||||||||||||||||||||||||||||
|
prevalent types
|
Data only for large enterprises. ESO, SO, ESOP, & PS |
ESO--CPS & DPS, including PS certificates | In large firms, employees can receive stock ownership. In village enterprises, the community and workers share broad ownership of enterprises. | Employees limited to 10% ownership of a firm. |
BPS SPS ESO |
150 ESAs are in various stages of implementation | Four state-owned electric companies privatized: employees offered 20% of shares at 80% of net asset value | DPS & CPS/ESO | DPS, CPS, ESO, DSO, EBO, SO-saving |
ESO&DPS PS in general |
d.n.a. | 150 privatizations--employees purchase shares with payments spread over 15 years. | ESO,SPS, & SO | PS & SO | CPS | CPS, SO & DPS | Large companies: employees limited to maximum ownership of 20% During liquidation: employee/management can lease-buyout the company if 50.1% agree to buyout. Liquidation buyouts are the most popular; with over 1000 firms now employee owned via this method. | PS & ESO | 2/3 of 12,000 privatized firms employed EO. However, employees are selling their shares to outside investors. | Employee can purchase shares with a 10-15% deposit with a 10-15 repayment option. Management buyouts receive no incentives nor special terms | A holding company provides long-term financing. Usual conditions for share allocation: 20% to employees at no charge; 20% to citizens; 10% to national compensation fund; 40% sold to employees or other groups. | CPS | d.n.a. | DSO, CPS, SPS, SO, ESOPs | 15,000 companies have some form of EO; 7% of firms based on EO. ESOP is most common. | ||||||||||||||
|
# of schemes/firms involved
|
ESO: 20 schemes SO: 1 ESOP: 2 PS: 1 |
ESO: Quoted companies--CPS&DPS multinationals; financial sector; 10% of large companies (survey) | 15 privatized companies are significantly employee owned. |
BPS:25(1993) SPS:16(1993) ESO:10(1993) |
DPS: 41 firms or group of firms (1994) |
DPS: 19,000 firms & 15,780 agreements CPS: 8,800 agreements DSO: 200 quoted comp. EBO: 600 from 1984-1990; 56 since 1992(est.) SO-saving: 2,500 to 3,000 |
ESO&DPS: 1500-2000 firms PS: approx. 1%, twice as much as ESO/DPS |
d.n.a. | d.n.a. |
PS: 300 schemes (est.1991); Survey in 21% of companies employee incentives based on productivity SO: quoted (privatized) companies |
CPS: 28% of companies (mainly banks) 1995 |
CPS: 5.2% of firms SO: d.n.a. DPS: d.n.a. |
PS: d.n.a. ESO: quoted companies |
No. of collective agreements with clauses on CPS: 1,087 (1994) | d.n.a. |
DSO: 4,469 CPS: 9,425 SPS: 914 SPS: 914 SO: 1,128 ESOPs: 27 Total: 15,863 schemes |
|||||||||||||||||||||||
|
employees involved
|
ESO: approx. 18,000 SO: 400 ESOP: approx. 340 PS: d.n.a. |
1994: 36,900 employees | d.n.a |
DPS: 90,000 |
DPS: 1993-5.15 million CPS: 2.5million ESO: 0.75 million DSO:d.n.a. EBO:d.n.a. SO-saving:d.n.a. |
ESO&DPS: 1.5 millions PS: 6% |
d.n.a. | d.n.a. | PS: 900,000 (est. 1991) approximately 6% of employees | d.n.a. |
CPS: 11.5% |
ESO: employee shareholders: 12.4% of shareholders (1994) | Covered by these agreements: 1.8 million | d.n.a. |
CPS: approx. 2.5 million SPS: approx. 1 million SO: approx. 1 million Total: 4.5 million |
||||||||||||||||||||||||
|
employee benefits or profit share/employee
|
ESO: 1-45% of capital SO, ESOP& PS:d.n.a. |
d.n.a. | workers offered 5-10% of privatized company. Workers may borrow up to 50% of their severance pay to purchase shares. | d.n.a. |
DPS: 1994 approx. 2% of year-income to funds CPS/ESO: 1-2% of wages |
DPS: average PS 4.2% of earnings CPS: average 2.9% of earnings |
ESO&DPS: DM 20 billion PS: 5-10% of gross earnings |
d.n.a. | d.n.a. | d.n.a. | 4.5-8% of net taxable profits | CPS: 5.7% of average earnings | d.n.a. | d.n.a. | d.n.a. |
DSO: substantial CPS: average approx. 450 pound per employee SPS: average value at 2,700 pound per employee |
|||||||||||||||||||||||
|
number of employees in the country who have some form
of employee ownership
|
|||||||||||||||||||||||||||||||||||||||
|
percent of all employees in the country who have some
form of employee ownership
|
|||||||||||||||||||||||||||||||||||||||
|
number & size of major employee-owned companies
|
|||||||||||||||||||||||||||||||||||||||
|
relationship of unions to employee ownership
|
Aggregate value of US ESOP companies: $300-400 billion | ||||||||||||||||||||||||||||||||||||||
|
amount of pension funds where unions or participants
have meaningful control over investments
|
|||||||||||||||||||||||||||||||||||||||
|
percent of pension funds where unions or participants
have meaningful control over investments
|
|||||||||||||||||||||||||||||||||||||||
|
Change 1991-1995
|
ESO: expected increase | d.n.a | decrease | DPS: increase immediately after personnel fund introduced in 1990; since then very few new |
DPS: substantial increase CPS: substantial increase |
ESO&DPS: increase PS: slight increase |
d.n.a. | expected increase |
PS: unknown SO: slight increase |
slight increase |
CPS: increase in # of employees SO & DPS: expected increase due to integration with company-saving schemes |
PS: unknown ESO: since 1989 increase under privatization |
slight decrease | d.n.a. |
DSO: no increase CPS: enormous growth since 1991 SPS: strong increase SO: strong increase ESOPs: slow increase Total: numbers doubled since |
||||||||||||||||||||||||
| Changes 1995 to present | |||||||||||||||||||||||||||||||||||||||
| Your suggested category here. |