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World2Rights sows the seeds of long-term
thinking.
1. Bonuses in the form of shares should
be the most tax-efficient form of rewarding employees provided
that they are held for at least a minimum period. Early sale of
shares from an employee's bonus fund will result in an early redemption
penalty; an employee will always have an incentive to hold onto
the shares in his or her bonus fund.
2. Granting free shares to be made the
most tax efficient form of rewarding customer loyalty - provided
that shares are retained for a minimum period.
3. An additional compulsory pension scheme
with fixed deductions made through the tax system will be used
to endow personal funds (funded from after-tax income). Top-up
payments will be made into the scheme on behalf of the lowest
paid. A choice of funds will be available but they will
all be managed on a low risk basis.
4. A new stakeholder investment market,
alongside existing markets. Here share buyers will pay deposits
that will only re-paid if there is continuous ownership of the
related shareholding for a minimum time period.
5. All tax incentives for equity plans
to be dependent on i) the fund being held for a minimum time and
ii) a certain proportion of the fund's component investments being
held for a minimum time.
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