Why Employee Share Ownership Matters – 2026 Revision

Successful enterprise creates wealth, but for that prosperity to be enduring and widely shared, those who contribute their skills and labour should also be able to participate in the growth in value of businesses they help to build. Employee share ownership provides one of the most practical, market-based ways of achieving that aim.

The UK has developed successful employee share schemes, including SIP, SAYE, CSOP and EMI, together with Employee Ownership Trusts (EOTs). These have helped many businesses align the interests of employees with long-term success. As the framework continues to evolve, there is an opportunity to enable more companies to extend participation more widely and to ensure that the tax system supports, rather than inadvertently constrains, those who wish to share the growth in value of their businesses with all employees.

The revised edition of Why Employee Share Ownership Matters argues that employee share ownership should be viewed not simply as a remuneration tool or a matter of tax policy, but as an important part of Britain's long-term economic strategy. For many people, a workplace share plan is also their first experience of investing. It introduces the principles of ownership, long-term saving and participation in capital markets, helping to create the next generation of informed and confident investors. Thus, employee share ownership complements the objectives of the UK's Retail Investment Campaign to broaden participation in wealth creation.

The evidence suggests that businesses with meaningful employee share ownership often enjoy stronger engagement, higher productivity, greater resilience and better long-term performance, while employees gain the opportunity to build capital alongside earnings. As the government pursues higher growth, stronger productivity and broader economic opportunity, we believe employee share ownership can make an important contribution.

For almost forty years, the Employee Share Ownership Centre has worked with governments of all parties, HM Treasury, HMRC and business to advance broad-based employee share ownership.