Mike Smith is head of corporate executive and employee trading at Canaccord Genuity Wealth Management.
Employee share ownership is a very valuable tool for managers to ensure all employees are aligned with shareholders, knowing that by executing their role to the best of their ability, they’ll contribute to the overall success of the firm. It’s quite simply a win win scenario by rewarding employee loyalty and hard work with all stakeholders.
At a Centre level, I think it’s important to keep up the good work of lobbying the government to promote employee ownership. From within a company itself, it comes down to running clear and concise workshops that explain the benefits of share ownership to all employees.
Real life case studies can help to drive the message throughout the organisation.
Lastly, whether it be a Share Incentive Plan (SIP) or Save As You Earn (SAYE) scheme, the company should seek to make the terms as generous as possible within the boundaries of the scheme rules.
Take a leap of faith! Or speak to colleagues or contacts at other firms to see how successful they found employee schemes worked.
I think we’ll continue to see people elect to use SIPs as opposed to SAYE schemes as interest rates don’t look like they’ll be going higher anytime soon and therefore a matching scheme is likely to prove more popular. In particular, where a generous employer fully matches the employees’ commitment to the scheme.
I would say we have moved away from just having senior executive share plans to more broad based all employee schemes that (apart from alignment) have encouraged people to use them as a savings tool.
Probably this would be a means of simplifying ownership for employees that are based outside of the jurisdiction to which their employer is listed. If employees feel there is too much form filling (W8-BEN for example) or costs (dealing / custody / settlement) then they might liquidate at the first opportunity or perhaps simply decline to participate from the outset.
Stock Appreciation Rights (“SARs”) might be one option, but it definitely needs more thought.
It recognises the contribution that everyone makes to a firm’s success, regardless of their level.
That would have to be the community spirit amongst the members, with the Centre leading by example!
Perhaps more informal get-togethers from time to time. Pub quiz perhaps!
Being on the river bank, fly-fishing rod in hand and a cold beverage in the other!
Well that would be stubbornness or perseverance – I’ll let time decide.
Being able to work with many fantastic companies and in turn becoming great friends with my counterparts there.
Personally that would have to surviving in London which is no mean feat for a Scotsman that grew up in the countryside and more accustomed to welly boots than a suit & tie!
Sir Douglas Bader.
Tricky to single one out, but Sir Tom Farmer would be amongst the top three. A true entrepreneur, self-made success and founder of Kwik-Fit. He made a speech at my school leavers’ ceremony that I’ve never forgotten. It was about recognising what you’re not good at and making sure whatever you do do, you perform that role to the very best of your ability. You don’t have to be book smart to succeed, just determined and passionate about it.
That would be my late grandfather. Started work at 14 before becoming a Spitfire Pilot during WW2 then after the war, building up an international textile business. His energy and motivation was contagious throughout the workforce and remains an inspiration to this day.
Although not technically a possession, that would be Florence, my two-year-old black Labrador.