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The Employee Ownership Update

Loren Rodgers

January 3, 2017

(Loren Rodgers)

Happy New Year

The staff and board of the NCEO wish all readers of this update the very best for the upcoming year. May it be joyful and prosperous, and may it bring many opportunities for us to work with you to create and strengthen employee ownership.

China Considers Increased Employee Ownership in State-Owned Enterprises

China's long-running effort to strengthen state-owned enterprises includes "mixed-ownership reform" intended to change these companies' ownership structures and make them more market-focused. One component of mixed-ownership reform includes what in a December 23 article calls "employee stock ownership plans," although such plans are more similar to U.S. employee stock purchase plans and may be restricted to senior employees. China has about 150,000 state-owned enterprises, employing over 30 million people.

India May Increase Employee Ownership Incentives

India's Department of Industrial Policy and Promotion has proposed that equity compensation plans be taxed when the shares are sold and that the capital gains holding period be reduced from the current period of 24 months. These changes are expected to be introduced in the federal budget draft, scheduled to be released on February 1.

Employee Ownership in the Media

In a New Year's Eve post in the Indiana Business Journal, Greg Andrews writes: "Year in and year out, a parade of central Indiana companies sells to out-of-state buyers. Such deals aren't necessarily bad... Yet it's also great to see a local company follow a different path—one aimed at positioning the firm for long-term independence. Such was the route recently taken by the Indianapolis construction firm Shiel Sexton Co., which finalized a transaction Sept. 30 making it 100 percent employee-owned."

In blog post in the Washington Examiner, Dean Zerbe encourages President-elect Trump to encourage employee ownership.

An op-ed in WilmingtonBiz discusses the various forms of equity compensation that can be effective in start-up companies.

Ballot for NCEO Board Is Open

NCEO members in good standing received an invitation this morning to fill out a ballot to elect new directors for the NCEO's board. The nine candidates are:

If you did not receive a ballot, you may contact the NCEO to verify your member status and email address and to request a replacement ballot invitation. If you are from an organization in which multiple people are covered by a single membership (such as an employee-owned company), only the primary member receives a ballot invitation.

Members may vote until 5:00 PM Pacific Time, Thursday, January 26, 2017.

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