Workforce equity Ownership must be simple

Navigation of the current employee ownership models and employee share schemes is complex. The Equity Project advocates simple tax changes that builds on existing policy to speed up the rate of take up.

Workers thereby become members of the company

Once employees own shares within the company they become members of the company and enjoy the rights that go with it including voting and the rights to a share in the company’s profitability.

Employees Should own the shares with immediate effect

Under current employee share schemes there is a time period of 3 to 5 years before workers have access to the shares. The Equity Project advocates the immediate ownership of shares whether received for free, or paid part or full value.
 

acquisition of shares should be voluntary

Employees must voluntarily choose to own shares as it leaves them to assess their financial stability and ability to obtain shares.This in turn stimulates productivity and innovation.

By making any form of equity scheme an obligation, the social benefit given by allowing a choice is removed.

No tax charge on the receipt of shares

There are a number of tax implications for the transfer of shares that acts as a barrier to the process. The Equity Project proposes no tax on the receipt of shares at the initial transfer.

Shares should be held on an individual basis

By allowing workers to hold shares as individuals, a deeper relationship is formed between the business and its individual shareholders. Employees are more personally invested in the outcomes of the business and feel a greater personal responsibility in developing progress, facilitating innovation and harnessing productivity.