Article date: 18 March 2002
A new Inland Revenue advertising campaign backed by GordonBrown, faces a tough time according to a survey* by online personalfinance service - norwichunion.com.
The share incentive plan (SIP) aims to encourage more workers tobuy shares in the businesses that employ them with a view to makingthem feel they have a stake in the company.
According to the chancellor of the exchequer, Gordon Brown,"There is no better incentive and motivation for the employees thanfor the work to be recognised and for them to share in the firmssuccess."
However, fewer than one in ten of the shareholders questioned bynorwichunion.com said they acquired company shares because theywanted to play a role in their company’s future.
Nearly a quarter of the adult working population owns shares inthe company they work for, but only 15 per cent actually believethat their shares represent a good investment. Nearly two thirds ofthem feel that their investment doesn't actually give them anysense of company ownership.
Paul Stokes, head of marketing at norwichunion.com, said, "Theidea that staff who own shares in their company will somehow feelmore involved in its success doesn’t appear to ring true inthe majority of cases."
"Our research shows that the overwhelming reason for owningcompany shares is as a means of making money (23 per cent) withvery few employees seeing share ownership as being linked to theirindividual performance or that of their colleagues."
norwichunion.com's online share dealing service can only foundat www.norwichunion.com.
David Ross at Norwich Union on 08703 66 68 65
Notes to editors
- * This survey was carried out by Taylor Nelson Sofres between18-20 January 2002. 1,003 people, aged 16+, were interviewed onthe telephone across the UK.
- norwichunion.com was launched in May 2001 and provides acomprehensive range of free, interactive financial planning toolsand impartial money guides, designed to help people make betterfinancial decisions by making complex money matters simple.
- A fund supermarket ISA, offered by NUSOF.com Limited, andshare dealing service are the first in a range of products thatwill subsequently include a number of banking products.
- Norwich Union is the UK’s largest insurer offering acomprehensive range of long-term savings and general insuranceproducts.
- Norwich Union’s news releases are available on thisinternet site
- A selection of images is available from the Norwich UnionNewscast site at www.newscast.co.uk
- An ISDN facility is available for studio quality interviews.Call the press office on 08703 66 68 68
For life and pension media enquiries 08703 66 68 73
For all other media enquiries 08703 66 68 68