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The Employee Ownership Update

Loren Rodgers

November 15, 2011

(Loren Rodgers)

Company Stock in 401(k) Plans

Reuters reporter Mark Miller looked at trends in company stock holdings in public company 401(k) plans and published a list of the companies with the highest concentration of plan assets in company stock. All 10 companies on the list, based on research by Brightscope, have 401(k) plans with over 60% of assets in company stock. Colgate-Palmolive is at the top, with over 75% of plan assets in company stock. The article notes that these high concentrations often result from company matches and from rapid increases in the value of company shares. The Brightscope research also indicates that the percentage of plan assets in company stock in 401(k) plans decreased by one-quarter from 2007 to 2009.

ESOP Company Executive Compensation Survey Launched

The NCEO's third survey of executive compensation practices in ESOP companies is now open. Click here to complete the survey. For your participation, you will receive a summary of the data (if you so request).

NCEO members can view a summary of the 2009 survey results on the list of downloadable research results in the members-only area of our site. (username and password required). You can also view a PDF version of the questionnaire if you would like to research your answers before opening the survey. Contact Camille Kerr (ckerr@nceo.org; 510-208-1310) with questions or concerns. All of your answers to this questionnaire will be completely anonymous, and any identifying information will be removed from the data.

Innovations Award Nominations Being Accepted

The Innovations in Employee Ownership Award recognizes innovative practices that result from having an engaged workforce of employee-owners, as well as ideas that tie stock to improved company culture or performance. If your company or a company you know is a good candidate for this award, the NCEO wants to hear from you. You can learn more on the Innovations Awards program's Web page, where you will find details about how to nominate, an application form, a link to descriptions of past winners, and a list of prizes received by winners.

More Details Emerge on Zimbabwe's Employee Ownership Plan

According to an October 11, 2011, article from the Herald, the government-owned newspaper of Zimbabwe, 5% of the shares in public companies in Zimbabwe have been set aside for employees, with a special preference for youth and women. Another 3% are to be set aside for management. The transfers result from the Zimbabwe Indigenisation and Economic Empowerment Act, which originally had the goal that indigenous Zimbabweans own at least 51% of the shares of "every public company and any other business." Youth Development, Indigenisation and Empowerment Minister Saviour Kasukuwere said the program will see "see the generality of workers in all companies acquiring a stake and becoming part-owners of the business."

NCEO Board Nominations Now Open

The NCEO will hold its annual election for board members in January, and we are accepting self-nominations through December 19. Board members serve three-year terms at their own expense. The board meets in person during the afternoon and evening preceding the annual conference and the morning of the conference. In addition, board members participate in conference calls (two per year) and serve on task forces with specific goals, from membership, to research projects, to publications, to feedback on staff projects. We seek members who will take an active role in supporting NCEO affairs and finding new members. To begin the self-nomination process, view our resource page for prospective board members.

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