The Situation of Employee Financial Participation in the EU-28

Country

Incidence of Profit Sharing (PS)

Incidence of Employee Share Ownership (ESO)

Specific State/Fiscal Incentives

Trade Union Positions

Comments / Specific Features

Austria

EWCS (2012): 8.9%

ECS (2009): 8%

EWCS (2012): 1.9%

ECS (2009): 2%

Yes

Promotion of ESO and SO

Critical, but supportive in particular cases (especially profit sharing)

Mainly used during privatisation of state industries

Belgium

EWCS (2012): 9.7%

ECS (2009):

15%

EWCS (2012): 3.4%

ECS (2009): 11%

Yes

Promotion of ESO, SO and PS

Law on PS and ESO

Critical, but supportive in particular cases (especially profit sharing)

Priority objective of usage: Income policy

Bulgaria

EWCS (2012): 8.3%

ECS (2009): 9%

EWCS (2012): 0.6%

ECS (2009): 7%

No

Generally supportive

Mainly used during privatisation of state industries

Cyprus

EWCS (2012): 3.2%

ECS (2009): 6%

EWCS (2012): 0.9%

ECS (2009): 4%

No

No important issue on the agenda, low priority

Czech Republic

EWCS (2012): 17.8%

ECS (2009): 17%

EWCS (2012): 0.6%

ECS (2009): 1%

No

No important issue on the agenda, low priority

Mainly used during privatisation of state industries

Denmark

EWCS (2012): 11.5%

ECS (2009): 14%

EWCS (2012): 4.5%

ECS (2009): 13%

Yes

Promotion of ESO

Critical, not supportive

Priority objective of usage: Income policy

Estonia

EWCS (2012): 11%

ECS (2009): 18%

EWCS (2012): 0.8%

ECS (2009): 3%

No

No important issue on the agenda, low priority

Mainly used during privatisation of state industries

Finland

EWCS (2012): 23.6%

ECS (2009): 23%

EWCS (2012): 2.1%

ECS (2009): 5%

Yes

Promotion of share-based PS by ‘Personnel funds’ in firms with more than 30 employees

Generally supportive

Priority objective of usage: Income policy

Supported by social partners

France

EWCS (2012): 22.9%

ECS (2009): 35%

EWCS (2012): 7%

ECS (2009): 5%

Yes

Substantial promotion of PS, ESO and savings plans

Deferred PS compulsory in firms with more than 50 employees

Tax benefits for SO

Critical, but actively involved on firm level

Active role of the state

Priority objective of usage: Income policy and supplementary pensions

Germany

EWCS (2012): 12.2%

ECS (2009): 14%

EWCS (2012): 2%

ECS (2009): 3%

Yes

Especially promotion of savings plans

Promotion of ESO within the legislation of capital accumulation (savings plans)

Tax benefits for SO

Critical, but supportive in particular cases (especially profit sharing); currently interested in employee financial participation

Priority objective of usage: Income policy and supplementary pensions

Fiscal incentives mainly focus on savings plans

Greece

EWCS (2012): 2.9%

ECS (2009): 4%

EWCS (2012): 0.2%

ECS (2009): 2%

Yes

Promotion of ESO and PS

Tax benefits for SO

Generally supportive

Priority objective of usage: Income policy

Hungary

EWCS (2012): 7.7%

ECS (2009): 13%

EWCS (2012): 0.6%

ECS (2009): 4%

Yes

Promotion of ESO

Interested, but no activities

Mainly used during privatisation of state industries

Ireland

EWCS (2012): 5.7%

ECS (2009): 11%

EWCS (2012): 2.4%

ECS (2009): 6%

(Yes) Incentives suspended due to the economic and financial crisis

Substantial promotion of ESO, PS and savings-related SO

Generally supportive

Especially supported by joint stock companies and SMEs

Priority objective of usage: Wage flexibility and supplementary pensions

Italy

EWCS (2012): 8.8%

ECS (2009): 3%

EWCS (2012): 2.3%

ECS (2009): 4%

Yes

Promotion of ESO and PS, but to a small extent

Mixed attitudes

Latvia

EWCS (2012): 7.8%

ECS (2009): 10%

EWCS (2012): 0.9%

ECS (2009): 4%

Yes

Promotion of ESO

No important issue on the agenda, low priority

Mainly used during privatisation of state industries

Lithuania

EWCS (2012): 10.3%

ECS (2009): 8%

EWCS (2012): 0.3%

ECS (2009): 3%

Yes

Promotion of ESO

Interested, but no activities

Mainly used during privatisation of state industries

Luxembourg

EWCS (2012): 14.3%

ECS (2009): 9%

EWCS (2012): 4.6%

ECS (2009): 4%

No

Critical, not supportive

Malta

EWCS (2012): 3.5%

ECS (2009): 4%

EWCS (2012): 1.2%

ECS (2009): 3%

No

Generally supportive

Netherlands

****

EWCS (2012): 18%

ECS (2009): 27%

EWCS (2012): 2.6%

ECS (2009): 5%

Yes

Promotion of ESO and savings plans

Tax benefits for SO

Critical, but increasingly supportive in particular cases (especially profit sharing)

Priority objective of usage: Income policy and supplementary pensions

Poland

EWCS (2012): 14.5%

ECS (2009): 7%

EWCS (2012): 1.6%

ECS (2009): 4%

Yes

Promotion of ESO

No important issue on the agenda, low priority

Mainly used during privatisation of state industries

Portugal

EWCS (2012): 3%

ECS (2009): 16%

EWCS (2012): 1.7%

ECS (2009): -

Yes

Promotion of ESO and PS, but to a small extent

No important issue on the agenda, low priority

Priority objective of usage: Income policy

Romania

EWCS (2012): 4.6%

ECS (2009): 7%

EWCS (2012): 1.9%

ECS (2009): 11%

Yes

Promotion of ESO

Supportive in particular cases

Mainly used during privatisation of state industries

Slovakia

EWCS (2012): 21.4%

ECS (2009): 17%

EWCS (2012): 3.2%

ECS (2009): 2%

No

No important issue on the agenda, low priority

Mainly used during privatisation of state industries

Slovenia

EWCS (2012): 20.4%

ECS (2009): 14%

EWCS (2012): 4.2%

ECS (2009): 7%

Yes

Especially promotion of ESO

Generally supportive

Mainly used during privatisation of state industries

Supported by social partners

Spain

EWCS (2012): 5.9%

ECS (2009): 17%

EWCS (2012): 2.2%

ECS (2009): 5%

Yes

Promotion of ESO and SO

Promotion of ‘workers’ companies’ (social economy)

Critical, but supportive in particular cases

Priority objective of usage: Income policy

Sweden

EWCS (2012): 15%

ECS (2009): 24%

EWCS (2012): 2%

ECS (2009): 11%

Yes

Promotion of share-based PS by ‘Profit Sharing Foundations’

Critical, but supportive in particular cases (especially profit sharing)

Priority objective of usage: Income policy

United Kingdom

EWCS (2012): 11.8%

ECS (2009): 8%

EWCS (2012): 4.4%

ECS (2009): 6%

Yes

Substantial promotion of ESO, PS and savings-related SO

Critical, but actively involved on firm level

Especially supported by joint stock companies and SMEs

Priority objective of usage: Wage flexibility and supplementary pensions

Abbreviations

ESO: Employee Share Ownership

PS: Profit Sharing

SO: Stock Options

Sources