GEO INSIGHTS

Imagine getting a job offer from your dream company, but they refuse to disclose the currency of your salary—this is how the startup equity compensation market often operates. Employers offer stock options or RSUs without revealing the total number of company shares, leaving employees uncertain about their actual ownership stake. Current regulations do not require startups to provide comprehensive valuation information, leading to an overestimation of equity grants and undermining the high-tech labor market's competitiveness.

President Cyril Ramaphosa emphasized the importance of worker share ownership schemes for economic transformation, stating that giving workers a stake in corporate decision-making fosters innovation, morale, and builds a resilient economy. Speaking at the inaugural Worker Share Ownership Conference, he highlighted that Employee Share Ownership Plans (ESOPs) can deepen workers' understanding of business challenges and opportunities, promoting growth, investment, and job creation. He also stressed that these initiatives not only advance social justice but make sound business sense, helping to equitably distribute the benefits of economic progress across society.

Research by Zest indicates that a majority of employees, especially younger ones, desire increased investment in sustainability from their employers, with over half expressing interest in sustainable benefits like electric vehicles and green pensions. Despite this, a significant portion of younger workers feel their employers lack concern for sustainability, which impacts their morale. Employers are also observing a growing demand for sustainable benefits, highlighting the importance of adapting to these changing employee expectations to improve overall employee satisfaction and attract and retain talent.

In January 2024, a Delaware Court rescinded Tesla's 2018 option grant to Elon Musk, valued at $56 billion, due to breaches of fiduciary duty in awarding the grant. Now, Tesla seeks shareholder ratification of the grant to reinstate it, addressing disclosure deficiencies and procedural issues highlighted by the court. However, the legal strategy faces uncertainty, with potential challenges and implications for shareholder approval under Delaware law.

President Cyril Ramaphosa highlighted at the Inaugural Worker Share Ownership Conference in Johannesburg that employee share ownership plans (ESOPs) are vital for broadening ownership and promoting economic transformation in South Africa, particularly among previously disadvantaged groups like women and black South Africans. He emphasized the role of ESOPs in improving social justice, enhancing worker engagement in corporate decision-making, and boosting productivity and innovation within companies. Trade, Industry and Competition Minister Ebrahim Patel presented statistics showing significant ESOP adoption across various sectors, with 551,000 workers benefiting and ESOPs reaching about 1.54 million South Africans, underscoring their growing impact on economic empowerment and equity in the country.

Employee share ownership plans (ESOPs) in South Africa have gained momentum, highlighted at the inaugural Worker Share Ownership Conference in Johannesburg. Minister Ebrahim Patel emphasized the widespread adoption of ESOPs across various sectors, benefiting over 551,000 workers and indirectly reaching 1.54 million South Africans through family dependents. President Cyril Ramaphosa underscored ESOPs as crucial for economic transformation, promoting inclusivity, and enhancing worker engagement and productivity, while advocating for improved governance and funding policies to further support their implementation and success.

EY's 2024 Mobility Reimagined survey reveals that only 25% of employers have fully developed mobility functions, despite 64% of employees expressing a higher likelihood of staying after long-term global assignments. Companies face increasing cross-border risks, with 71% of respondents noting heightened challenges, including tax/regulatory and data privacy risks, highlighting the need for robust policies and integration of mobility functions to attract and retain top talent and ensure business resilience.

This article advocates for greater democratization of workplaces, highlighting the absence of democratic rights for workers despite their significant time spent in these environments. It discusses the potential benefits of enabling employees to have more control and ownership in their workplaces, citing examples of successful employee-owned firms in Canada and abroad. The article also outlines various public policy options, including the creation of Employee Ownership Trusts, to facilitate the expansion of democratic employee ownership in Canada and address barriers such as limited access to capital.

Research indicates that while board gender quotas can enhance female representation at the board level, they do not increase the number of women appointed to executive positions within organizations, as seen in India's case. Instead, appointing women to positions of authority on boards, such as executive directors, positively impacts the careers of women at lower levels, potentially due to their influence in senior management recruitment. The study underscores the need for policies that focus on increasing women's representation across all levels of senior management, rather than solely targeting board appointments, as highlighted by the forthcoming Women on Boards directive in the European Union.