The Deputy Prime Minister will launch today a campaign for a “well-rewarded workforce”, saying that businesses owned by their staff are more dynamic and have higher morale.
He wants to encourage companies to follow the model of John Lewis, the department store group which is owned by its employees and distributes its profits between them.
Mr Clegg’s call for “responsible capitalism” will come as City firms are preparing to pay executives billions of pounds in bonuses, despite pledges from politicians to curb excessive pay and growing hardship among ordinary families. Bob Diamond, the chief executive of Barclays, is reportedly in line for a £10?million payout.
The banks are handing out part of the profits to the staff. This is bad. John Lewis hands out all of the profits to the staff. This is good.
Is Clegg (et al) really so fucking ignorant that he doesn\’t realise that a system of bonuses is equivalent to employee share ownership? Especially as many of those bonuses are in fact paid in restricted shares? In fact, I think I\’m right in saying that by law some part of bankers\’ bonuses must be paid in restricted stock. It\’s certainly how Bob Diamond gets a piece of his wedge.
Do we really have a Deputy Prime Minister who is that thick?
The Deputy Prime Minister will add that companies tend to be run better if workers have a stake in them.
“Firms that have engaged employees, who own a chunk of their company, are just as dynamic, just as savvy, as their competitors. In fact they often perform better. The 1980s was the decade of share ownership. I want this to be the decade of employee share ownership. We need more individuals to have a real stake in their firms, more of a John Lewis economy.”
One proposal under consideration is a “right to request” rule, which would give staff an automatic opportunity to ask their employer for shares.
Mr Clegg has asked Danny Alexander, the Chief Secretary to the Treasury, to incentivise companies by “[looking] at the tax arrangements for employee-owned firms”. A source close to the Liberal Democrats said: “Nick is pushing his Government colleagues for real, early, radical action on this.”
Whatever tax breaks they bring in, guess who are going to be the companies who dive in and take advantage of them?
Yup, the banks. For they already do this, don\’t they? Hand out wodges of equity to their staff each year. So if there\’s a tax break for handing out wodges of equity then the banks will structure bonuses to meet the demands of that tax break.
This is a tax break for bankers\’ bonuses.
Won\’t Compass, nef, Ritchie, all those who support the mutualisation of the economy, be happy about that?