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Stockholm —
Seven European countries have changed their laws to increase employee ownership in startups to match the U.S. in attracting talent and investment, while others have changed their laws to increase employee ownership in startups, according to a report by venture capital firm Index Ventures. The country is lagging behind.
Stock options have been essential to Silicon Valley’s success, but they have been hampered in Europe by bureaucracy, premature taxation of employees and other restrictions.
Mario Draghi said in a long-awaited report last month that if the European Union wants to keep pace economically with the United States and China, it needs coordinated industrial policy, quick decisions and big investments.
In 2019, more than 500 startup CEOs and founders participated in a campaign called “Not Optional,” which introduced rules governing employee ownership, meaning European-based companies seeking talent from U.S. companies. The company sought to change its practices to give employees the option of acquiring a piece of the company as the company competes.
Germany, France, Portugal, and the United Kingdom lead European countries with similar or better reforms than the United States, while Finland, Switzerland, Norway, and Sweden scored poorly in the index report.
Martin Mignot, a partner at Index and an investor in Revolut, a $45 billion fintech company, says that when companies like Revolut go public, ownership turns into real money for employees. speak
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