Staff Shareholding Scheme
Discussion
Here's one thats got me scratching my head a bit guys;
GF works as a Nurse for a Social Enterprise and has come home with a leaflet asking her if she wants to buy 1 redeemable ordinary share for £1.
I work in the stock market so understand the motives for most companies wishing to issue shares but I'm sitting here pondering why they would wish to do this. There's only a couple of thousand staff so raising funds isn't the objective, as administering it would cost more than that being raised. There doesn't seem to be an option to buy a more meaningful stake from the paperwork she's been given. I just don't get it really, it's not an ongoing scheme, just a one off purchase of a quid.
Maybe they genuinely want to give the impression of involving people, but I'm a cynical type so wonder if there could be other, less beneficial, motivations to such a scheme??
GF works as a Nurse for a Social Enterprise and has come home with a leaflet asking her if she wants to buy 1 redeemable ordinary share for £1.
I work in the stock market so understand the motives for most companies wishing to issue shares but I'm sitting here pondering why they would wish to do this. There's only a couple of thousand staff so raising funds isn't the objective, as administering it would cost more than that being raised. There doesn't seem to be an option to buy a more meaningful stake from the paperwork she's been given. I just don't get it really, it's not an ongoing scheme, just a one off purchase of a quid.
Maybe they genuinely want to give the impression of involving people, but I'm a cynical type so wonder if there could be other, less beneficial, motivations to such a scheme??
72EuropaTC said:
This, IMO.
Ok, so any idea why a company would go to the bother of printing glossy literature and administering an employee share scheme for a token sum? The only comparative i can think of is football clubs where inclusion/support is a powerful thing to harness.
Still baffled why a smallish private enterprise would bother...
As you've described it as a social enterprise then presumably it's a CIC so there are strict rules on dividends and the not for profit aspect.
Can't see any benefit whatsoever of the scheme but some social enterprises do have some very strange views on what a good business idea is - maybe they think it will just boost involvement?
Very odd.
Can't see any benefit whatsoever of the scheme but some social enterprises do have some very strange views on what a good business idea is - maybe they think it will just boost involvement?
Very odd.
GadgeS3C said:
As you've described it as a social enterprise then presumably it's a CIC so there are strict rules on dividends and the not for profit aspect.
Can't see any benefit whatsoever of the scheme but some social enterprises do have some very strange views on what a good business idea is - maybe they think it will just boost involvement?
Very odd.
Cheers. Glad im not the only one who thinks it odd, feel i may be missing something, and i dont like missing things. Ultimately, i think it is an attempt to involve staff like you say. Seems like business wastage though!Can't see any benefit whatsoever of the scheme but some social enterprises do have some very strange views on what a good business idea is - maybe they think it will just boost involvement?
Very odd.
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