Upward Mobility is Impeded
To most Americans, the promise of equal opportunity remains an illusion.
Research by Opportunity Insights at Harvard University reveals that 90% of children born in 1940 grew up to earn more than their parents. For children born in 1980, this figure has declined to 50%.
The Russell Sage Foundation reports that children of parents in the bottom 20% of wealth holdings today have less than a 6% chance of making it into the top 20% in their lifetime.
The Gig Economy
The need for change in our economic system is highlighted by the “Gig Economy,” a transactional dance between employees and workers in which neither commits to the other.
The Gig Economy leaves workers chasing elusive wealth opportunities, while companies face debilitating employee turnover and an inability to retain talent, undermining their bottom line.
A Path to Wealth Creation
For America’s promise of equal opportunity to be fulfilled, a clear path from opportunity to wealth creation must be opened.
With America’s wealth concentrated in company equity, the clearest path available is to give American employees the opportunity to earn equity in the companies for which they work.
The EO Index equips the management of American companies to play a lead role in shaping this path while at the same time maximizing shareholder value.