Government scheme hopes to inspire employee ownership of firms
DEPUTY Prime Minister Nick Clegg’s attempts to stimulate a “John Lewis” economy in the UK will be given a boost this week when Co-operative Development Scotland (CDS) appoints a team of “ambassadors” to promote employee ownership.
High street stalwart John Lewis is often held up by politicians as a beacon for employee ownership because its staff all hold a stake in the business, sharing in its profits.
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Hide AdClegg and other political figures want to see “responsible capitalism”, claiming firms that are owned by their staff are “more dynamic” and have higher morale.
In a speech in January, the deputy PM outlined plans for tax breaks for companies that offer shares to their staff.
Amid the backdrop of the “shareholder spring” – which has seen investors rebelling over what they see as excessive pay for boardroom leaders – CDS will unveil a list of ten “champions” who will promote employee ownership as an alternative business model.
Ambassadors named by the group will include: Fred Bowden, managing director at Dyce-based watermark equipment maker Woollard & Henry; Chris Parr, chief executive at Glenrothes-based paper maker Tullis Russell; and West Highland Free Press managing director Paul Wood, who led an employee buyout in 2009.
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Hide AdBowden said: “Employee ownership can be the defining factor in driving growth and securing the future of a company that might be facing a succession issue. Becoming employee-owned has proved a very-positive step forward for our company. So becoming an ambassador for this model is a project I warmly embrace.”
Sarah Deas, chief executive of CDS, added: “The best ambassadors for our innovative business models are those companies that have embraced them for themselves.”