EMPLOYEE SHARE OWNERSHIP
Share schemes "integral part" of pay package in newly-floated businesses
About half of the companies which floated on the London Stock Exchange in 2000 introduced some form of share scheme for the whole workforce, according to research by New Bridge Street Consultants.
The sharesave scheme remains the most common plan, used by two-fifths of the 72 companies surveyed. Just under a fifth (17%) had adopted the new all-employee share ownership plan, which was introduced by the government during 2000.
Key survey findings
| Scheme | Per cent of surveyed companies |
| Executive share option | 97% |
| ESOP | 42% |
| Sharesave | 40% |
| Long-term incentive | 17% |
| All-employee share ownership plan | 17% |
| Profit sharing | 8% |
A final word
"Increasingly, share schemes are regarded as an integral part of the overall remuneration package, rather than simply as an ‘add on’ benefit, particularly amongst new economy companies which floated last year. It is no surprise, therefore that all but one of the companies which floated in 2000 introduced some form of share scheme." — New Bridge Street Consultants.
Want to know more?
Title: Survey of employee share schemes and executive incentives on flotation — 2000, by New Bridge Street Consultants.
Methodology: The survey covered companies floated on the London Stock Exchange in 2000, with the exception of non-UK companies, investment companies and companies previously traded on the Alternative Investment Market. A total of 72 companies were surveyed.
Availability: This survey is published on an annual basis for clients and contacts of NBSC. For more details, contact Mark Anderson in London, tel: 020 7282 3030, email: admin@nbsc.co.uk.
New Bridge Street Consultants is a firm of management consultants, which specialises in the areas of executive remuneration, employee share schemes and pensions. To find out more, jump to . . . www.nbsc.co.uk