Sharing the benefits of the 'S' in ESG

More employee ownership needed

clock • 4 min read
Anton Seatter of JTC Group
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Anton Seatter of JTC Group

In May this year, a report from the Social Market Foundation identified that less than 5% of working age individuals are employee shareholders and called for the concept to be expanded.

Some of the benefits of a Stake in success, as the report is called, are familiar, notably the potential financial benefit to employees, and increasing corporate coherence and continuity. However, the key question for potential investors is whether companies which operate share-ownership arrangements, are likely to be more profitable than those that do not. And when viewed through an ESG lens, are such companies likely to score more highly, particularly with regard to ‘S'?  Raymond James to offer US 'employee' model to wealth manager partners Whatever the incentive structure...

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