
Contents
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14.1 Introduction 14.1 Introduction
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14.2 Foundational Issues for Single-Country Employers 14.2 Foundational Issues for Single-Country Employers
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14.3 Design Parameters for Ownership Plans 14.3 Design Parameters for Ownership Plans
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14.4 Multi-Country Employers 14.4 Multi-Country Employers
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14.5 Plan Design: Legal and Regulatory Issues 14.5 Plan Design: Legal and Regulatory Issues
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14.5.1 Labour Law 14.5.1 Labour Law
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14.5.2 Securities, Currency Exchange, and Foreign Ownership Laws 14.5.2 Securities, Currency Exchange, and Foreign Ownership Laws
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14.5.3 Taxation 14.5.3 Taxation
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14.5.4 Employee Communications 14.5.4 Employee Communications
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14.5.5 Data Privacy Laws 14.5.5 Data Privacy Laws
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14.6 Best Practices 14.6 Best Practices
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14.6.1 Benefit Levels 14.6.1 Benefit Levels
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14.6.2 Communications 14.6.2 Communications
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14.6.3 Business Literacy and Employee Participation 14.6.3 Business Literacy and Employee Participation
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14.6.4 Smooth Out the Incentive 14.6.4 Smooth Out the Incentive
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14.6.5 Predictability 14.6.5 Predictability
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14.7 Recent Developments 14.7 Recent Developments
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14.8 Conclusion 14.8 Conclusion
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References References
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14 How to Think about Global Employee Ownership
Get accessLoren Rodgers, Executive Director, National Center for Employee Ownership (USA)
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Published:06 November 2017
Cite
Abstract
Motivated by data on the impact of stock compensation, many companies wish to provide their employees with an ownership interest in their stock. Whether they use stock options, direct share ownership, or other approaches to employee ownership, those companies must adapt their plan design to the specifics of labour law, securities’ requirements, tax regimes, privacy laws, and other issues in various countries. This article suggests guidelines for companies to design their plans by reviewing best practices in equity compensation, beginning with single-country employers and then expanding to companies with international employees. Companies are wise to begin with their ideal plan design and then adapt it to reflect legal requirements, taking into account that some companies must accommodate the requirements of multiple countries. The form of employee stock compensation will affect the development of ownership cultures at these companies, and therefore the impact of employee ownership on the companies’ performance.
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