The Employee Ownership Update
November 1, 2012
UK Government Endorses Action to Increase Employee Ownership
The United Kingdom's new Minister for Employment Relations, Jo Swinson, released a blueprint on Tuesday to encourage employee ownership of companies, saying "We will address one of the biggest barriers to take-up of employee ownership schemes: awareness that it exists" and described the goal as creating "new impetus to a business model we want to see thriving across the country." The action plan includes creating an implementation group, working with accountancy organizations to create "off-the-shelf" templates for creating employee ownership companies, and examining ways to reduce regulatory burdens facing employee ownership companies when they are faced with repurchase obligations. These action steps flow out of a government-commissioned report
written by Graeme Nuttall.
Facebook Unlocks Employee Shares
Amid media speculation about the impact of a flood of employees selling shares, Facebook shares were on a gradual decline in the days leading up to October 29, the day employee shares were to be released from lock-up. The release was delayed when the stock exchanges were closed, so on Wednesday 234 million shares became eligible to be sold, and the stock opened at $21, a 4% decline from its prior closing price. Trading volume was roughly 50% higher than usual. The price held roughly steady Wednesday and Thursday, but still far below the company's IPO price of $38. Facebook has three more rounds of lockups, which expire in mid-November, mid-December, and May 2013.
Run for the NCEO's Board of Directors
Would you like to help the NCEO fulfill its mission to provide accurate, reliable information about employee ownership? If you are interested in serving on our board of directors, please nominate yourself, and if you know someone who would be interested, please encourage them to do so. The NCEO will accept nominations until December 14, and the election will be held in January. You can learn more about how to apply and the expectations for directors on our page Running for Election to the NCEO's Board of Directors
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