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Re: Employee shareholder scheme

Posted: Fri May 29, 2020 3:09 am
by Kanto
Japan has its own brand of emotional investing in which you buy stock to show your loyalty to the company.

...Or to get those sweet sweet flight discount vouchers.

Re: Employee shareholder scheme

Posted: Fri May 29, 2020 7:51 am
by eyeswideshut
My company's ESPP is also a good deal. Basically I purchase stock at the discounted rate and then sell it immediately and take the difference in cash (less the tax I have to pay). I gather that some company ESPPs are less generous or have mandatory lock-ins so definitely read the fine print before opting in.

Re: Employee shareholder scheme

Posted: Sat May 30, 2020 7:34 am
by TokyoWart
Kanto wrote: Fri May 29, 2020 3:09 am Japan has its own brand of emotional investing in which you buy stock to show your loyalty to the company.

...Or to get those sweet sweet flight discount vouchers.
I don’t mean to disagree with you but wanted to provide a perspective from company management. I’ve been a corporate insider and part of senior management at a Japanese company for over a decade now and a big part of my own portfolio is in company stock. I have never, even once, seen a discussion about promotion or other advancement of an employee bring up their ownership of company stock. Senior management doesn’t know (but maybe could find out; lower management has no way to find out) and honestly doesn’t care about your ownership of company stock because that’s a decision made based on your personal financial circumstances not your company loyalty or what you contribute to the company’s mission.

Re: Employee shareholder scheme

Posted: Sat May 30, 2020 9:18 am
by Kanto
TokyoWart wrote: Sat May 30, 2020 7:34 am
Kanto wrote: Fri May 29, 2020 3:09 am Japan has its own brand of emotional investing in which you buy stock to show your loyalty to the company.

...Or to get those sweet sweet flight discount vouchers.
I don’t mean to disagree with you but wanted to provide a perspective from company management. I’ve been a corporate insider and part of senior management at a Japanese company for over a decade now and a big part of my own portfolio is in company stock. I have never, even once, seen a discussion about promotion or other advancement of an employee bring up their ownership of company stock. Senior management doesn’t know (but maybe could find out; lower management has no way to find out) and honestly doesn’t care about your ownership of company stock because that’s a decision made based on your personal financial circumstances not your company loyalty or what you contribute to the company’s mission.
I did not mean to imply it had a direct effect on an employee's perceived loyalties. Rather it is a reflection of their loyalty and faith in their own company. The blind buying of stock simply because your partner works for the company is something I have seen a few times in Tokyo. I have also heard people buying a stock simply because they wished to *support* a company.

There is nothing wrong with an employee holding company stock, assuming they are diversified. I can think of lots of companies that I would like to own stock in AND work at!