Global Share Plans
Strengthening global culture through widespread employee share ownership.
Global share plans, if carefully designed and rolled out, can provide
companies with a valuable tool to reinforce the corporate business and
reward strategy.
Companies have found that extending share plans globally can help
them to:
- Establish corporate identity and promote an employer brand
- Recognise local business centres (outside the HQ jurisdiction) which are, or will be, key to the company’s success
- Encourage capital accumulation by employees, in the light of diminishing state provision in some jurisdictions
- Motivate the workforce to focus on specific business objectives
- Educate employees about financial issues
- Assist recruitment and retention.
Extending share plans to employees in other countries does however
present challenges. Each territory has different securities, exchange
control, tax and employment laws and regulations - as well as particular
cultural issues. Multiple countries significantly increase the
administrative complexity and the need for a clear, comprehensive
communication strategy.
But not extending plans to the total workforce does mean an important
opportunity for global advantage can be missed.
Research conducted for Watson Wyatt’s Human Capital Index™ study
in Europe and North America shows that employee share ownership is
associated with a significant increase in shareholder value.
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