Professor Michael Mainelli & Simon Mills
Long Finance & Esop Centre (November 2022), 29 pages.
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Employees Share Ownership (ESO) contributes to the economy, to social mobility, to levelling up, and to localism, and these issues, rather than simply taxation, should also be front and centre in decision-makers’ minds when considering ESO. ESO began as a USA and UK movement in the 1970s. ESO has spread widely internationally. This short paper is a recap of the broad case for ESO in 2022.
Employee Stock Ownership Plan (ESOP) schemes align well with the UN’s Sustainable Development Goals (SDGs), especially SDG 10 – Reduced Inequalities. Although ESOPs are not a panacea, they can help to deliver significant marginal gains across most SDGs (see figure 5), particularly in the development of sustainable, resilient communities. Four areas of public policy can contribute to support the formation and health of ESOPs – education, legislation, taxation, and research (particularly around benchmarking and statistics):