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Financial Participation

In 2002, the Economic Ministry of Slovenia established an expert group to prepare special regulations on financial participation schemes. The proposal provided for a more efficient organisation of current employee share ownership in Slovenian companies and established a basis for further employee participation in company profits and corporate ownership. The implementation of share ownership and profit-sharing schemes was supposed to be voluntary.

 

 

 

Employee Share Ownership

 

During the privatisation process about 90% of companies in the process of ownership transformation preferred internal share distribution and internal buy-out as the predominant privatization method. Altogether, inside owners, i.e. employees (including managers) and former employees and their relatives, obtained nearly 40% of the capital during ownership transformation. In more than 300 companies (about 24% of all privatized companies) the inside owners acquired more than 60% of the company’s capital (20% via internal distribution + 40% via internal buy-out). In contrast, in about 80 firms (nearly 6% of all companies) representing about 30% of the total capital under privatization, insiders did not obtain more than 10% of the companies’ shares.

 

 

Insider ownership predominated in smaller, labour-intensive companies.1 The final share of inside owners was determined by the employees’ financial capacities, e.g. wealth constraints, firm size etc., and their willingness to obtain company shares.

 

 

According to the findings of the fifth European Working Conditions Survey (EWCS, 2010) on the incidence of financial participation across the EU, the incidence of employee share ownership in Slovenian private-sector companies with more than 250 employees is about 4.2%.2

According to the results of the European Company Survey, a survey of more than 27,000 HR managers in Europe conducted in 2009, 7% of private-sector Slovenian companies with 10 or more employees offer their employees share ownership schemes, above the 29-country European average of 5%.3 The findings of the Annual Economic Survey of Employee Ownership in European Countries in 2012 show that 50% of the largest Slovenian corporations offer broad-based (share) ownership schemes covering the whole workforce (European average: 53.3%).4

Profit-sharing

 

 

Since the early 1990s socially owned companies have been obliged to distribute 5% of profits among the employees. However, in 2002 only about 7% of 41 large Slovenian companies did in fact establish a share fund to reward their employees.5 About 32% of these companies implemented the option for employee profit-sharing in their Articles of Association. However, this possibility remained unused in about 22% of the companies.

 

 

According to the results of the European Company Survey, 14% of Slovenian private companies with 10 or more employees offer their employees a profit-sharing scheme, in line with 30-country European average of 14%. The prevalence of employee profit-sharing schemes in Slovenia varies according to company size. 15% of companies with 10-49 employees, 8% with 50-199 employees, and 12% of companies with more than 200 employees have a profit-sharing scheme.6 According to the results of the fifth European Working Conditions Survey (EWCS 2010) 20.9% of private companies in Slovenia with 250 or more employees offer profit-sharing.7

For the Cranet study in 2011 HR managers in 29 countries were asked about the incidence of workers’ financial participation schemes in their firms. The study found that in Slovenia there are profit-sharing schemes in 35% of companies (100 or more employees).8 This is average.

 

 

Cooperatives

 

 

The number of workers’ cooperatives is very small. At the end of 2003, cooperatives employed about 1% of employees and produced about 1% of total value added.9

Wilke, Maack and Partner (2014) Country reports on Financial Participation in Europe. Prepared for www.worker-participation.eu. Reports first published in 2007 and fully updated in 2014.