Agenda

Coffee, tea, and pastries.

Welcome to the Symposium and an explanation of the importance of the Symposium in a global context of public policy, non-governmental organizations and the private economy, and of this year's main themes.

Speakers

• Jonathan Michie, Pro-Vice-Chancellor, University of Oxford, President of Kellogg College and Director of the University of Oxford's Centre for Mutual and Co-owned Businesses
• James (Jim) Bonham, President, Employee Ownership Foundation and President & CEO of The ESOP Association (USA)

A summary of policy-making lessons learned so far on developing and maintaining good employee ownership policies.

Speaker

• Graeme Nuttall, Partner, Employee Ownership Association

When the concept of promoting employee ownership surfaces within a public policy context, policymakers inevitably also consider the prevention of abuse.  Government incentives for the creation or operation of employee-owned firms – preferential tax treatment, direct grant programs, contracting preferences, among others – demand the protection of public resources.  Yet, ill-defined or overzealous government oversight can severely impede, even reverse, the intended inducement of greater employee ownership. It is unrealistic to expect regulation to control every aspect of converting companies to employee ownership and maintaining them as employee-owned. We hear from panelists experienced in various approaches as to what should be regulated and what can be left to self-regulation by employee-owned companies and the employee ownership sector.

(Coffee, Tea and Pastries)

These talks will cover the impact of the Work Opportunity, Readiness and Knowledge (WORK) Act, US regulatory actions, and state-level initiatives within the US; the outcomes of the U.K.'s consultations on its all-employee tax advantaged share plans and the employee ownership trust; Canada's employee ownership trust legislation and the introduction of employee ownership legalisation in Slovenia.

Speakers

• James Bonham, President & CEO The ESOP Association

We hear in detail about the American experience of achieving the right price and terms for a conversion to employee ownership using an employee stock ownership plan and the law and practice that protects Government and employees' interests including what has worked and what has not. In discussion we contrast this with the UK approach, of relying on general trust and tax law to prevent abuse on sales into an employee ownership trust, and alternative employee ownership models in America that are not subject to the rules of qualified retirement plans that govern all formal retirement plans, including ESOPs.

20 Minutes Walk

A founder's perspective on why employee ownership worked for me, as a company founder, my business and my employees

Panelists will identify behaviors that have or might lead to the abuse of tax measures that support employee ownership and explain how they are counteracted, including examining relevant rules regarding implementing a U.S.A. employee stock ownership plan; the U.K. statutory definition of an employee ownership trust and financing employee ownership trusts or other collective ownership vehicles.

Coffee, Tea, Sweets

Having arrived at fair financial terms for a conversion to employee ownership and satisfied any employee ownership tax requirements, is anything more needed to create good quality employee ownership?  We hear from America of what can go awry with post-transaction control, the use of profits, re-leveraging, re-purchase obligations, diversification strategies, executive compensation and seller warrants and the extent to which regulations can prevent problems.  In discussion, panelists will explore the topic with further examples   and the policy solutions to them.

Speaker

• Graeme Nuttall, Partner, Employee Ownership Association

Talk on A Philosophical Look at Employee Ownership

Speaker

• John Hoffmire, Director, Carmen Porco Chair in Sustainable Business, Center on Business and Poverty

Coffee, tea, and pastries.

Louis Kelso imagined employee ownership as a mechanism by which the profits generated through the work of employees would provide the capital to purchase ownership.  As employee ownership grows in popularity and appeal, and government policies are created to incentivise growth, what it means to be truly employee owned becomes relevant.  Where does the continuum of ownership start and end to fit within the definition and spirit of employee ownership?  How employee ownership is financed is where this issue becomes key. Panellists will discuss what alternatives exist and what more should be done to finance conversions to employee ownership beyond vendor and bank finance, including the use of intermediate ownership funds and other innovative lending measures and examine whether these prejudice a company's employee ownership status. Is there a minimum percentage of ordinary share ownership that must be held by or on behalf of all employees to deliver genuine employee engagement and other benefits of employee ownership?

Coffee, Tea, Beverages

Every system of employee ownership has strengths, yet what are the differences in ensuring employees derive financial benefits from their company?  How can commercial freedom be balanced with protecting employees' interests? Panelists will explain the enhanced pay and other rewards provided to employees in employee-owned companies and examine, in particular, profit-sharing through employee stock ownership plans, other tax-advantaged and non-tax-advantaged employee share plans and receiving cash bonuses from employee ownership trust owned companies, with an emphasis on regulatory provisions that help or hinder these mechanisms.

Coffee, Tea

Panelists will explore if employee ownership policies need to be designed with the aim of achieving greater popularity, as well as being effective, including examining how Government supported regional employee ownership centers should communicate with the business sector and communities; whether official accreditation of employee-owned companies helps and whether some official guidance should be aimed at employees rather than owners.

20 Minutes Walk

The benefits of employee ownership are many and can provide great news.  Most conversions to employee ownership generate a local news story. But the only coverage of the results of the U.K.'s groundbreaking EO Knowledge Programme was on Sky TV.  Failures of employee-owned companies also get publicity, but government inaction or over-reach rarely does.  Panelists will share their views on when employee ownership is newsworthy, and why it is difficult to ignore Government Ministers when they talk about employee ownership.

Coffee, Tea, Patries

Delegates respond to what they have heard at the Oxford Symposium on Employee Ownership 2024 by sharing their main asks of their respective governments:

• Australia - Employee Ownership Australia
• Canada - Canadian Employee Ownership Coalition
• Denmark - Demokratisk Erhverv
• Ireland - Irish ProShare Association
• Japan - Japan Employee Ownership Association
• Mexico - Centro de Capital Incluyente
• Netherlands - Stichting Nederlands Participatie Instituut
• Poland - Forum Rozwoju Akcjonariatu Pracowniczego
• Scotland - Scotland for Employee Ownership
• Slovenia - Inštitut za Ekonomsko Demokracijo
• South Africa - Southern Africa EO Association
• Spain - Agrupacion de Sociedades Laborales De Euskadi
• U.K. - Employee Ownership Association
• U.S.A. - The ESOP Association

The U.S.A and U.K. have longstanding bi-partisan and all-party support for employee ownership measures. Senior politicians will explain what, in particular, attracts their party to supporting employee ownership and why it has been, and continues to be worth supporting robust policies for Employee Ownership.

Speaker

• Graeme Nuttall, Partner, Employee Ownership Association

Reflections on the Oxford Symposium 2024

Employee Ownership Globally by 2030

Speakers

• James Bonham, President, Employee Ownership Foundation