Norwegian Sovereign Wealth Fund CEO Says Employee Ownership Belongs on Every Board's Agenda

Norway's main sovereign wealth fund is the Government Pension Fund Global. The fund is managed by Norges Bank Investment Management, whose CEO Nicolai Tangen recently wrote on LinkedIn that “As evidence for employee share ownership continues to grow, companies face a choice. They can concentrate ownership narrowly, or they can use employee ownership as a strategic tool to improve returns and build more resilient companies. The financial case for the latter is compelling. This should be on every board’s agenda.” Tangen states that the fund has consistently voted its shares in favor of proposals for employee ownership plans. 

Tangen’s statement takes on particular meaning in light of the fund's size. The Government Pension Fund Global is the largest sovereign wealth fund in the world, with over $2.1 trillion in assets, largely from oil and gas reserves held by the state. It is twice the size of the largest private equity firm. Tangen writes:

As artificial intelligence transforms the global economy, questions about value distribution have gained urgency. New technologies can concentrate wealth, but they can also create opportunities for broader participation. This makes it increasingly important to consider how companies can distribute prosperity more broadly while strengthening their competitive position.

One answer lies in a surprisingly underutilized tool: employee share ownership. While AI sharpens the focus on this question, the benefits extend far beyond technology companies.

Tangen notes that research consistently shows that employee ownership improves company performance. The best plans, he said, “extend broadly across the workforce, not just to executives; they complement wages rather than substituting for them; their structure has a long-term focus with requirements that are flexible and reasonable; and they include clear information so employees understand how they work.”