The media regularly report stories about employees who have suddenly become millionaires by virtue of their shares in their employing company. For instance, when the American company, Intel, took over the Danish computer firm Giga , each employee received DKK 15 million for their shares. According to the management of Radiometer in Copenhagen , which produces hospital equipment and has many employee shareholders, the experience with this type of pay in the form of shares has been good. Our employees feel a closer attachment to Radiometer when they hold shares. This makes our firm an attractive place to work when we are to recruit new people.
Danish companies have three options as regards the allocation of shares to employees.
Each option is governed by specific rules on matters such as taxation. LO proposes that employee share-ownership possibilities should be offered to all employees. The employers are quite happy with the schemes as they are now. It is DA and the employers who hold the upper hand at present in the development of pay systems in Denmark, and LO has to find its place in a system which some fear could end up with strongly employee-oriented companies, making the trade unions redundant. This is why LO has to take a position on pay in the form of shares - it is high time for it to do so, especially because LO's affiliated union cannot be said to have the same interest in this matter as the employers.