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Share ownership

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Over the past year there has been a significant rise in employee share ownership

Employee share ownership has been hitting the headlines in recent months, with news of Sports Direct, BT and Asda employees receiving record payouts. Research by ifs ProShare finds there has been a significant rise in employee share ownership in the last year. Head of employee share ownership John Collinson explains how they work:

“Usually administered in either a ‘Save as You Earn’ plan or a ‘Share Incentive’ plan, employees acquire shares in the company they work for either by saving up to £250 a month to buy them, or receiving them directly as a non-cash bonus from their employers.

“While employees benefit from tax advantages and dividends as share owners, employers in return get a highly motivated workforce who are invested in the future success of the company, increasing productivity and reducing staff turnover.”