A Pilgrim's Progress

Some reflections on my trip to San Francisco as I sit by my gate in the airport waiting to board a plane that will take me home to the UK. Spending time in Silicon Valley is akin to a pilgrimage for this equity geek of twenty years' standing, being the birthplace of the executive stock option in the 1970s.

The US and the UK have centuries'-long intertwined histories and that's true of the equity compensation/share plans movement too. GEO itself was founded by equity professionals from both sides of the Pond some twenty five years ago.

Mill owners and 'sharesmen'

English share plan roots descend from a small group of mill owners at the time of the first Industrial Revolution, who took the then rather revolutionary decision to share some of their profits with some of their workers, an early form of profit-sharing. Yes, it was only the male supervisors (not the women and children of the broader workforce) who were deemed worthy of such beneficence, but it was a start.

In parallel to this development, the New England cod fishing fleet was putting its own rather more egalitarian version of profit sharing into practice. Entire ships' crews got to share in the financial rewards of their catch and they were even known as 'sharesmen'. Yes, an entirely male workforce, but again: a start. (Joseph Blasi et al write about this in their book 'The Citizen's Share', which I commend to every fellow equity geek that I know.)

We have come further still since those early days of profit sharing. From my professional perspective, I have to say that yes, profit sharing is great! But equity ownership is even better.

In the centuries since the first Industrial Revolution we have indeed progressed, from profit-sharing to shared ownership, executive stock options to broad-based employee share ownership, and through to global versions of these plans. From small acorns grow great oaks.

Fridges to frigates

We are all now in the midst of a fourth Industrial Revolution. But instead of steam power we are now wrangling with computing power, AI, and its huge demands on energy. Silicon chips are inside practically everything, from fridges to naval frigates, beyond the wildest dreams of Kilby, Noyce and Shockley. The battle for control of the world's semiconductor industry and chip production sits at the very top of government agendas, as it confers great financial and geopolitical power on those who are top of the pile.

Essential equity

Equity has a key part to play in this revolution. Without employee equity opportunities, companies of all shapes sizes and industries cannot attract or retain top talent. Without that key ingredient, productivity stalls, investors don't get their returns, funding evaporates, and companies fail.

So there was no better place or time than the GEO NorCal Forum this week to gather fellow equity professionals, to reconnect, build out our networks, share knowledge and enjoy each other's company and solidarity.

I'm grateful to everyone I connected with this week here in Silicon Valley and I hope to see you all again soon.

Find out more about GEO here: www.globalequity.org