Did you know that O’Connells OBM is employee owned? Our employee share ownership program has been running for over 20 years, and more than 80% of our team hold physical ownership in our business through an Employee Share Ownership Plan (ESOP).
Our director, Adam Dierselhuis, recently facilitated a discussion on the power of ESOPs alongside Marque Lawyers and Quiip Consulting at the annual B Corporation Assembly Conference last week, and shared 3 compelling reasons why you might want to consider implementing a ESOP or similar program in your own business:
- Equity is a basis for long-term thinking and, when provided in conjunction with business education and involving team members in the process of business, can create an ownership culture
- ESOPs provide a mechanism for organisational sustainability and a plan for succession
- ESOPs provide extrinsic motivation – creating a deeper connection and physical stake in the outcome of the success of the business.
While ESOPs can work in businesses of any shape and size, there are a number of tax consequences to consider or be aware of when establishing an ESOP, and for some businesses – a well thought out Incentive Scheme may be a better option or a good starting point before jumping in to an ESOP.
If you’re curious about what an ESOP or incentive scheme could do for your business, Adam is more that happy to chat – you can contact him by email or connect on LinkedIn.
The articles, templates, and media posted on this blog do not give business, accounting, taxation or financial planning advice and should not be relied upon as such. The articles are intended to provide information in a summary form and are general in nature. Formal business, accounting, taxation or financial planning advice should be sought in particular matters. O’Connells OBM Pty Ltd accepts no liability in respect of this information and any person acting solely on the information contained within does so entirely at their own risk.