That's unfair. They are both extremely useless. On another level. cyril has been the biggest disappointment since Kamp Staaldraad. He's a clueless idiot. An indecisive moron. When he opens his mouth we take it with a pinch of salt (something that the anc hasn't figured out how to steal yet).
Off cyril goes to some event organised by slaptjips (ebrahim patel – more useless than cyril). Sprouting some outdated leftist (the speech was probably written by tjips) our esteemed weak man said
He said if workers were incentivised, as was the case with CEOs and other top managers, they would go above and beyond in their bid to see the companies they worked for grow.
Ramaphosa said worker share ownership schemes were an "investment towards the achievement of greater social justice", adding there is a need to "underpin what we do with the concept of leaving no one behind".
"These interventions are necessary for the sake of equal opportunity and addressing the historical inequities and inequalities, particularly in a country like ours, but also towards increasing productivity and the growth of the economy."
He added that quite often, workers were sidelines (sic) when companies reward their top CEOs or managers with shares in a bid to incentivise them and encourage them to be more creative, adding:
There are some serious problems with this drivel. We have to remember that this is electioneering. I need to explain why this is utter rubbish
- The most suitable vehicle for Employee Share Ownership Plans (ESOPs) is a trust. A trust can accommodate an unlimited number of people. It's also quite flexible, people can come in and out of it. A company ((Pty) Ltd) can have a maximum of 50 shareholders. If an employee is fired then they remain a shareholder. Messy. But you may have noticed that another of cyril's governmental failures is the master of the high court. Dysfunctional is too polite a term. You could wait for up to two years to get these incompetents to give you a Letter of Authority. Let's face it. ESOPs are done because of BEE. There's no other reason. If you do it then you want the points. But in spite of the substance over legal form rule, no VA is going to give you the points without a a LOA. And why? Because the power hungry deludeds at SANAS will give them a non-conformance and take away the VA's licence.
- The overwhelming, and I am talking OVERWHELMING, minority of BEE deals are paid for upfront. Another major failure of the BEE process. Every other deal, including ESOPs, are vendor financed. The workers are not going to be incentivised to perform for at least 10 years, probably more, because their ESOP owes the company money. The workers may be able to behave like shareholders in their ESOP but they are still not behaving as shareholders in the company.
- cyril's gone populist. When he speaks of CEOs and managers getting shares he is referring to share options. These mature in a much shorter period of time. If the company performs then the strike price of the option is less than the share is worth at the time. Hence you make money. But this depends on whether the shares are tradable. Listed shares are easier. Private shares are harder.
Conclusion. Don't vote for the anc. Don't vote for the eff or mk. Just vote sensibly