There is a widespread misunderstanding. Capitalism and liberalism are not inherently bad. Both have fundamentally improved living conditions worldwide over the last 170 years. It is the current aberrations of the system that are often unacceptable.
In the latest weekend edition (16th - 17th April 2022 of the influential Flemish business newspaper De Tijd, the first page boasts that the salaries of Belgian CEOs are rising by 14% (regardless of nuances that might be involved). Almost simultaneously, President-elect Macron stated that the remuneration of the CEO of Stellantis is shocking and exaggerated... Really?
All the media are living up to the hype of the impending French elections. The Financial Times reported in a "Big Read" piece last week that in the Gironde region, the impoverishment (not to say pauperisation) of the working class in rural France is growing by the hand. In the commune of Pauillac (not a name traditionally associated with poverty ...), the inhabitants place large trompe l'oeil signs in front of empty shop windows. In the urban centres, on the other hand, people are living comfortably. How much longer?
In the United States, a debate is currently raging about the possible impact of crypto-currencies on the (partial) adaptation of the current capitalist model. The Economist elaborates on this in its most recent contribution. A forerunner is Helium, which offers customers to install hot spots at home to use their Internet-connected devices. As compensation, customers are incentivised with crypto tokens. Users of social media such as Facebook and Twitter would then be able to participate in the development of these platforms and be compensated in shares (and profit participations). Is this a solution for the unemployed in rural areas? Perhaps. But the ideas go further.
After all, employee participation in the more traditional form is also gaining ground.
In general, the following existing forms of shares can be distinguished:
- Share purchase plans: employees obtain the right to acquire shares in the company-employer against payment (often at a discount).
- Free shares: granting of shares to employees without payment and/or delivery of any consideration.
- Restricted shares: allotment of shares to employees which can only be sold after a certain period of time (lock-up) or upon fulfilment of certain conditions (vesting and exercise conditions).
- Performance shares: granting of shares if certain predefined performance conditions are met.
Irrespective of the technique used, employee participation aims to increase staff commitment. The engine of the resulting prosperity and well-being is and remains the company. The accelerator is the interest and ingenuity of the employees. The renewed Belgian company law makes it even easier to model such employee participation.
It seems like a better idea than Just Eat Takeaway which took its executives on a skiing trip to Arosa. Loss of the company: EUR 1 billion. Cost of the trip: EUR 15 million. How much longer?
- Dirk Berckmans
