Building an employee ownership culture
Many long established family owned companies have a strong focus on sustainability and growth, rather than looking to sell the business. They’re looking to maintain and increase growth in the long term and they are also keen to foster a sense of commitment and belonging for all their staff, not just the founders. Of course, they will often also want to retain ultimate control for the family.
An option plan that only pays out if the company is sold won’t work if you want to incentivise and reward staff on a regular and ongoing basis, without a particular exit in mind. To do that, you need to take the long view and identify the right type of share plan to meet your particular objectives.
Over a period of years, one of our clients set up a variety of share plans which helped motivate and retain their employees in the long term by creating a real sense of ownership, yet without ever losing the family element of control. To find out how, read our case study here.