The Employee Ownership Update
October 1, 2018
Gender Gap in Employee Equity CompensationIn a September 17 report, The Gap Table: Analyzing the gender gap in equity, Carta (formerly eShares) and a collection of angel investors examined the "capitalization tables," which list the owners of companies and how much they own, for 6,000 of Carta's client companies representing over 180,000 employees and $45 billion in equity value. Their main findings are:
- Women make up 35% of equity-holding employees, but hold only 20% of employee equity.
- Female equity-holding employees own just 47 cents for every dollar male employees own.
- Women represent 29% of employees at companies with up to 10 employees. Female representation doesn't exceed 40% until companies approach 400 employees.
Baker & McKenzie Releases Updated Global Equity MatrixThe law firm Baker & McKenzie released the updated version of its Global Equity Matrix. The matrix covers tax issues, securities, labor law requirements, and data privacy issues for more than 50 countries around the world.
Comments on Employee Ownership in the UKThe opening line of Merryn Somerset Webb's September 28 review in the Financial Times (subscription required) of the Labour Party's proposed policy to promote employee ownership is "If there is one thing that absolutely everyone believes, it is that employee share ownership is a very good thing." The Labour Party has proposed that all companies with 250 or more employees be required to set aside shares for employees. Webb suggests some problems with the plan, noting that some of the dividends earned by employee stock would be paid to the state and that the 10% given to workers is a transfer away from existing shareholders.
Writing in the Guardian on September 27, Nils Pratley argues that Labour's proposal could induce the Conservatives to develop their alternative approach to promoting employee ownership.