Big Labour policy announcement coming up any second now, hold on tight.....
Every large British company would be forced to hand over 10 per cent of its equity to workers within a decade under Labour plans branded “draconian” by one business group.....
Unveiling one of the most interventionist business policies put forward by a mainstream British political party for a generation, John McDonnell said workers would become “part-owners” of their employers, eventually benefiting by up to £500 a year in dividend payments....
this is radical, ambitious policy making whether you like it or not ft.com/content/d7aa15…
CBI response:
“Labour is wrong to assert that workers will be helped by these proposals in their current form. Their diktat on employee share ownership will only encourage investors to pack their bags and will harm those who can least afford it.”
“Labour is wrong to assert that workers will be helped by these proposals in their current form. Their diktat on employee share ownership will only encourage investors to pack their bags and will harm those who can least afford it.”
TUC response:
“We need an overhaul of corporate governance in this country. This proposal, along with putting workers on boards, is a welcome move from Labour. Workers should be given a bigger stake in their companies and more of a say in how they are run."
“We need an overhaul of corporate governance in this country. This proposal, along with putting workers on boards, is a welcome move from Labour. Workers should be given a bigger stake in their companies and more of a say in how they are run."
certain issues with this policy are in the technical delivery...a few questions:
1) would companies offer lower pay rises to counteract dividend payments?
2) would some companies move listing abroad (companies based overseas aren’t hit)
3) could some delist to avoid it?
1) would companies offer lower pay rises to counteract dividend payments?
2) would some companies move listing abroad (companies based overseas aren’t hit)
3) could some delist to avoid it?
staggering that this isn’t the splash in any other newspaper tonight, the policy would represent a historic step change in the capitalist system for better or worse 
Apologies missed these guys
and here’s the Times tbf
and here’s 1000-word Q&A on the new policy and how it may or may not work in practice @FT
ft.com/content/4cad1c…
ft.com/content/4cad1c…
to give you an idea of the scale of this policy, this is how much (in shares) some of Britain's biggest companies would have to hand over to workers, without compensation (my estimates)
HSBC: £13.6bn
Royal Dutch Shell: £24bn
BP: £11.5bn
BAT: £8.2bn
Glaxo Smithlkine: £7.6bn
HSBC: £13.6bn
Royal Dutch Shell: £24bn
BP: £11.5bn
BAT: £8.2bn
Glaxo Smithlkine: £7.6bn
Last gob-smacking fact
Labour would appropriate £250bn of shares to workers over decade - a tenth of equity.
There are 1,169 London-listed companies worth £4 trillion. Of those £2.5 trillion are UK-based.
Even excluding private firms & UK-listed foreign firms you reach £250bn.
Labour would appropriate £250bn of shares to workers over decade - a tenth of equity.
There are 1,169 London-listed companies worth £4 trillion. Of those £2.5 trillion are UK-based.
Even excluding private firms & UK-listed foreign firms you reach £250bn.
here's Adam Marshall, head of BCC:
“Why would investors here in the UK, and even more worryingly in boardrooms across the world, choose to put a penny into Britain in the knowledge that shareholdings will be diluted, and boards subject to significant government interference?”
“Why would investors here in the UK, and even more worryingly in boardrooms across the world, choose to put a penny into Britain in the knowledge that shareholdings will be diluted, and boards subject to significant government interference?”
finally: if you want to go deep into the weeds on this, I would recommend this piece by @FD ftalphaville.ft.com/2018/09/24/153…
