The report was presented in the plenary yesterday. At that occasion, rapporteur Phil Bennion (ALDE) explained the benefits of EFP for companies and especially SMEs as “a concrete way for companies to share success”. In the Strasbourg hemicycle, Bennion called for the EU to act, pointing out the lack of information within the EU, the lack of legislative incentives in some Member States, the different national taxation as well as the multitude of existing ESO models hampering companies that operate cross-border. To overcome these problems, Bennion proposes to share best practice examples between the Member countries, possibly leading to mutual recognition of these schemes. At this regard, Bennion refers to the current EU pilot project and the benefits that a Virtual Centre for EFP as well as an effective tax rate calculator could bring in order to augment the available information. Finally, he invited the Commission to conduct an impact assessment for a 29th regime for EFP.

– These topics will be part of our Brussels conference “Taking Action: Promotion of Employee Share Ownership” that will take place on the 30th of January 2014. –

In the following contributions, MEP Sari Essayah (EPP) pointed out the importance of the exchange of information between Member States. Shadow rapporteur Evelyn Regner (S&D) mentioned the Spanish Sociedades Laborales (click here to read more about this topic) as a well-working example for alternative EFP models. She also highlighted the voluntary character of EFP schemes which should always come on top of basis pay.

In his speech Commissioner Janez Potočnik emphasised the role of EFP as a source for long-term investment and he underlined Barnier’s support for the idea of a 29th regime. He further referred to the conference on ESO on 30 January, presenting an opportunity to get the feedback from the various stakeholders.

The best way to make this capital ownership available to all employees is by means of a leveraged ESOP model. The leveraged ESOP model allows the company to take on a bank loan in order to provide employees with shares of the company, by using the trust as the vehicle of holding shares. The leveraged effect originates from the loan repayment by future earnings.

[youtube=http://www.youtube.com/watch?v=BLqN8mj17hU&w=560&h=315]

Also see our previous blog posts:

The Economist: A shirnking slice – Labours’ share of national income has fallen

197 Words intro on leveraged ESOPs

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Watch the highlights of the press conference with:

Prof. Günther Verheugen – former Vice-President of the European Commision, Professor at the European University Viadrina

Prof. Jens Lowitzsch – Professor at the European University Viadrina

Alexander Graf von Schwerin – Rapporteur of the own initiative opinion SOC371/2010 on EFP of the European Economic and Social Committee

A small group of suited “gentlemen” is busy feeding their private needs stuffing themselves and their pockets with pieces of the “cake”. After they reached their point of saturation they start playing with the remains of the “cake” not taking in consideration that “others” might deserve it as well. When the janitor walks in, he thinks he finds only the left-overs of the “cake”, but he receives more than he can take…

What is YOUR share in this? How do YOU participate in “sharing” cake? Why not getting a deserved piece?