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Employee Share Ownership Plans (ESOP)

Increase productivity and maximise employee retention

An innovative way to gain productivity and retention benefits is to invite employees to invest in your business through a share plan, also known as an Employee Share Scheme (ESS).

With Employee Share Ownership Plans you can;

Structure your business so everyone shares in its success

Retain as much or as little operational control as you want

Preserve your business by leaving it in trusted hands

Employee Share Ownership Plans (ESOP)

Employee Share Ownership Plans (ESOP) are increasingly being used by business owners who want to gain immediate term productivity and engagement benefits while providing longer-term stability for their business.

An ESOP is a mechanism to allow employees to own a share of the company they work for.

Advantages for you as the business owner;

  • You can attract and retain high calibre staff by offering a direct stake in the business
  • When you want to move on from your business an ESOP can be an effective and efficient way to transfer ownership
  • Save tax by making payments to the ESOP that are deductible

Advantages for your employees include;

  • Providing a savings vehicle where they can accumulate savings, acquire and hold shares.
  • Creating a sense of community as employees feel more committed to ensuring the business thrives
  • Save tax by purchasing shares from pre-tax dollars

How To Set Up An ESOP

Getting your ESOP right is an important process – you need it to be attractive to your employees as well as support your business objectives. It has to be cost effective and easy to implement.

Above all the most important thing is to have a completely transparent and easy to understand scheme so that employees are clear on what they are participating in.

After extensive research, the ESOP we use and recommend is called the Peak Performance Trust (PPT).

 

How the Peak Performance Trust works:

Set up trust

You as an employer create an investment trust (we do this for you).

Make contributions

You will then make regular and predetermined contributions to the trust on behalf of, and for the benefit of your employees, contingent upon them achieving predetermined performance outcomes.

As the profits increase, so too does the percentage share that employees can benefit from. If profits are not increased, then no further allocation of funds is made to the PPT. That means you all have a shared stake in the success of the business.

A Peak Performance Trust is a “win/win for exiting owners who want the best for the business and to achieve the best sale price for their asset, and for their employees.” – LJ Hooker Franchise Manager

Case Study: A successful ESOP fuels Umwelt’s performance culture

Recently working with Environmental & Social Consultants, Umwelt, Succession Plus developed a tailored Employee Share Ownership Plan that worked for them and their employees. Watch our latest case study demonstrating how employee attitudes, actions and the overall business environment was positively impacted through ESOPs.

Umwelt ESOP Case Study.

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Earn Qantas Points for your business

Your business will earn 1 Qantas Point for every $1 spent on eligible Succession Plus products and services. *Conditions apply.

Building rising to the top

Umwelt is an environmental and social consultancy, with over 120 people providing services across the nation. We have worked with Succession Plus for over 10 years, during which time Craig West provided business and succession planning advice, and, Craig and the Succession Plus team guided us through the process of establishing our Employee Share Plan. Our Employee Share Plan is now well established, with 55 (44%) of our team now being ESP participants, expected to grow to 55% of our team participating by the end of 2020. The Succession Plus advice and support during this process has been outstanding, providing timely guidance and insight to our Board and Executive Team, in addition to providing training for our whole team, and maintenance of the ESP process. We are so very pleased to have a growing number of our team thinking and acting like business owners!

Barbara Crossley
Umwelt