How does EO benefit the company?

Question 1

What is the evidence for EO from the company perspective?

Answer 1

Research evidence shows that EO businesses

• tend to be more productive in terms of output per worker than other types of companies.
• Think & act for the very long term & are more resilient to economic volatilities.
• Especially in the knowledge based sectors have higher profitability than companies with other ownership structures.

Question 2

Are there tax incentives for the business?

Answer 2

Employee contributions to SIPs are exempt from employer NI. Profits used to fund a share transaction to an EBT are tax deductible.