In a speech given on 4th July 2012 at the Institute of Chartered Accountants in England & Wales summit on Employee Ownership in the UK, Deputy Prime Minister Nick Clegg announced that an Institute for Employee Ownership will be established in the UK.
Speaking at the summit in London, Clegg said: “We need to find the right levers to drive a kind of culture shift where going down the employee ownership route isn’t a eureka moment, but is much more normal, commonplace.
“Not everyone wants to set up their own company, but we all know we could; we all know someone else who has.
“That’s my aim for employee ownership too - another way to be your own boss.”
He stated that the advantages of employee owned companies are demonstrated by higher productivity, less absenteeism and smaller pay gaps between management and workers.
According to Co-operatives UK, the national trade body that campaigns for co-operation and works to promote, develop and unite co-operative enterprises, companies in employee ownership are growing at twice the rate of the economy in general.
The London Stock Exchange announced a new FTSE Employee Share Ownership Index which will help raise awareness of how significant employee equity ownership can be advantageous for both companies and employees and highlight the performance of employee owned businesses that consistently outperform the FTSE Index of shareholder owned companies.