Founders out, Employees in
The increase in employees share schemes is a reflection that human capital is becoming more important than physical assets. In addition to this, ESOPs are becoming an increasingly more popular way to exit a business. Businesses use employee share schemes not only as an employee engagement strategy but also as a succession strategy – selling all their equity to the scheme over a period of time. Businesses owned by their employees reap the benefits of employee engagement, with said firms achieving exemplary degrees of corporate social responsibility and a strong commitment to sustainability.