Employee ownership means that a trust will be set up to work in the best interests of current and future staff. The Montala Limited trust will own 100% of the company shares. Our founder and sole shareholder will sell his shares to the trust but will remain our CEO.
Since the trust will own all company shares, once the transition is complete, staff will have a degree of input into how the business operates. They’ll soon be rewarded with a share of the profits too (to start with, the trust will use the profits to fund the purchase of the shares).
Montala has already elected a transition team (who’ll become the first trustees) and are working with employee ownership experts, Baxendale, to guide them through the process. The company’s aim is to become fully employee owned by the end of the year.
Employee owned businesses
Employee owned businesses are becoming more and more popular in the UK. Since the employees are invested in the success of the organisation, businesses with this ownership model are generally more successful.
The staff are more committed to the success of the organisation and, because they’re more likely to stay with the company, they’re more talented too – experts in their field, if you like.