Richer Sounds is the latest company to transfer ownership onto their employees! Founder, Julian Richer has decided to give his 500+ employees a 60% stake in the business following his 60th birthday. Each of the employees will pick up £1,000 for every year at the firm, giving an average payout of £8,000, placing the shares in an Employee Ownership Trust.
Due to having no children to hand over ownership to, Julian Richer found the need to transfer ownership to those he trusts. He quotes “I didn’t want to sell to a stranger who might have completely different aims and ambitions for the business. I’m hoping it will ensure the succession of the business”. It has been voiced that co-owned companies tend to be more successful, competitive, profitable and sustainable!
Compared to John Lewis, who are the largest employee-owned company in the UK. In the challenging world of retail, the Employee Ownership structure allows the company to plan for the long term. It has been said that an industrial democracy, where employees share knowledge, power and profit, was a better form of business. This has shaped the company culture and encouraged the happiness of all its members.
BT are also another company who are handing out shares to their employees. Since announcing cuts to its 100,000-strong workforce last year, there were concerns of stress and low morale among staff. Now, with the aim to increase motivation amongst staff, the shares will go to BT employees around the world.
To read more about these companies’ transition to Employee Ownership, click here https://www.bbc.co.uk/news/amp/business-48297641
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