CONCLUSION Whichever plan type you and your advisors decide is best for your company, it’s clear that employee ownership brings many benefits to not just to employees, but for the business itself. Employee ownership is an effective, proven way to reduce the wealth gap and it fuels growth for companies – it’s a win win. When employees are part of a share scheme, they’re more invested in the company, more aligned with the company’s goals and will work harder to reap the returns. They’re not just working for a pay cheque; they’re looking for ways to drive the company forward. And given that most share plans spread out the issuance of shares over a period of time, employees have an incentive to remain with the company for longer. Mix those two incentives together – a reason to stay longer, and a reason to work harder – and you can see why they give companies such a great advantage. According to Harvard Business Review, about 17 million people in the U.S. workforce (12% of the total) are employed at variations of employee-owned businesses. Irish companies, and indeed European companies, have long lagged behind their American counterparts in terms of offering employee ownership. But Ireland is catching up and if you’re considering employee ownership as an option to reward your employees in a tax efficient way, contact us. We’ve been leading the way in the employee share plan space for more than 15 years and manage share plans for some of the world’s biggest companies.
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