Credit to Labour for their new thinking on wealth creation

by with Comments Off on Credit to Labour for their new thinking on wealth creation
September 11, 2018

For some years I have argued that companies should follow the example of listed company Handelsbanken and set aside a proportion of their profits into an employee shareholding trust. More recently I suggested that top executives should only be permitted large bonuses or share awards if proportionate action was taken to reward employees. I even talked about it being required by government when I spoke at the Labour Business event at the 2016 Labour Party Conference.

 

I am pleased and surprised to see that this idea has now been recommended to Labour by its 37 Co-operative Party MPs and, according to The Guardian, is likely to become party policy.

 

This is neither a left wing nor a right wing idea. It is a common sense move that links effort and loyalty to longer term rewards. I’ve criticised Labour in the past for lacking a clear and positive philosophy of wealth creation. This is a positive step in the right direction.

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