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.