Case Studies

Privately owned company looking to broaden employee involvement

Home / Knowledge base / Privately owned company looking to broaden employee involvement

Posted by Sebastian Salt on 07 January 2017

Sebastian Salt Senior Associate

Business sector: Engineering

Turnover: £5m

Shareholder/business goals and challenges

  • Broaden employee share ownership culture within the business beyond small group of founder shareholders
  • Ensure those who are actively involved in business can share in proportion of company’s future growth and future profits
  • Tie-in and motivate key employees to grow business value
  • As no exit is likely, create liquidity in shares to ensure that employees see value in their share interests and can buy and sell shares across participating employees

What we did and achieved

  • Implemented tax efficient Enterprise Management Incentive plan under which awards were made to wide pool of employees
  • Vesting of options conditional upon individual and company performance over three year term
  • Internal market created enabling employees to realise value from a proportion of their shares over time
  • Business value doubled across three year performance period and key employee retention improved
  • Significant increase in employee engagement with dividend participation and future rights to buy and sell shares via internal market

About the author

Sebastian Salt

Senior Associate

Seb specialises in the design and implementation of employee incentive arrangements.

Sebastian Salt

Seb specialises in the design and implementation of employee incentive arrangements.

Recent articles

28 May 2020 Guide to restrictive covenants

Employment and consultancy contracts often contain clauses restricting an individual’s working activity when they leave a business. These clauses, ‘post termination restrictive covenants’, typically restrict the ex-staff member’s ability to work in competing businesses, to deal with clients, to try to win business from them, or to poach other staff members.

Read article
28 May 2020 Could COVID 19 bring the end of high rise and cramped living?

On 14 June it will be three years since the Grenfell tower tragedy, global warming is adversely affecting the environment causing floods and other natural disasters, and the country is on lockdown because of coronavirus.

Read article
27 May 2020 Track and Trace: what are the limitations of the new NHS COVID-19 app?

The government’s new NHS Track and Trace app is at the heart of its plans for tackling the coronavirus, lifting the lockdown and helping us all return to normal as soon as possible.

Read article
How can we help?
01926 732512