“Inclusive ownership funds” are an exciting new idea building momentum in policy circles on both sides of the Atlantic. The basic idea is to mandate and institutionalize a more equal distribution of corporate profits and a more inclusive design for corporate governance by requiring small cumulative grants of company shares to a trust operated on behalf the workers at larger companies. These inclusive ownership funds create an automatic share for workers of any dividends issued by a profitable corporation–a critically important result in an era when worker compensation has been largely stagnant despite rising economic productivity.
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