NYSE Chief Says More IPOs Will Foster Job Creation

In an op-ed in Investor’s Business Daily, NYSE Euronext CEO Duncan Niederauer says: “To pull ourselves out of a jobless recovery, the first order of business for the new Congress must be to create an economic environment that unleashes America's entrepreneurs.”

Duncan points out that coming out of previous downturns, entrepreneurs and small businesses have been the main source of jobs.  He notes that 18 of the 30 companies in the Dow Jones industrial average were founded in economic downturns. “And history has shown that one of the best accelerators of job growth takes place when a company decides to leap from private to public funding through an initial public offering.”

For starters, Duncan calls for the following:

  • Create financial incentives for each American company that goes public, targeted at creating jobs. “By offering tax credits up to $300,000 for each IPO, Congress could make a meaningful impact in offsetting the cost of going public, particularly for smaller companies. The total cost of such a program, based on 2010 IPO levels, would be less than $50 million — a fraction of the $1 trillion we have invested in stimulus spending.”
     
  • “The U.S. economy would also benefit from tax policies aimed at promoting investment and encouraging innovation, rather than punishing success. Regulation should focus on reducing the obstacles for going public. Revisiting Regulation A to make it easier for small companies to access public markets and raising the market-cap threshold in Sarbanes-Oxley would be good places to begin.”
     
  • “Legislators should also consider a more thoughtful approach to our policy regarding work visas — one that recognizes what non-U.S. citizens consistently contribute to innovation here in the U.S.”

What do you think?  Your comments are welcome below.