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RCU, Buckingham House, Glovers Court, Preston, PR1 3LS Tel 01772 885999 | Fax 01772 887336 | Seminar 5: Linking employee ownership to.

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Presentation on theme: "RCU, Buckingham House, Glovers Court, Preston, PR1 3LS Tel 01772 885999 | Fax 01772 887336 | Seminar 5: Linking employee ownership to."— Presentation transcript:

1 RCU, Buckingham House, Glovers Court, Preston, PR1 3LS Tel | Fax | Seminar 5: Linking employee ownership to reward and performance Ownership, performance and reward at RCU - what works for us Gordon Aitken, Director RCU

2 RCU, Buckingham House, Glovers Court, Preston, PR1 3LS Tel | Fax | Seminar 5: Linking employee ownership to reward and performance About us – briefly! Customer surveys; staff surveys; market analysis; data mining; labour market info; stakeholder perceptions; income generation; customer relations management. Colleges and training companies Private sector clients

3 RCU, Buckingham House, Glovers Court, Preston, PR1 3LS Tel | Fax | Seminar 5: Linking employee ownership to reward and performance Previous Model (2002-April 2009) Managing Director Deputy Director EBT nominee 2 Non-Execs Right to attend for all other staff Salary bonus (equal for all staff) EBT group benefits (caravan, events) Reinvestment

4 RCU, Buckingham House, Glovers Court, Preston, PR1 3LS Tel | Fax | Seminar 5: Linking employee ownership to reward and performance Current Model (April 2009 onwards) Managing Director 3 Exec Directors (Elected A shareholders) 3 NEDs Right to attend for all other staff Dividend (equal for all staff) Staff Benefits Budget (group benefits) Reinvestment Share Ownership 17 voting shares awarded after 1 year’s service capital owning shares (and 900 options) – 60 per year of service.

5 RCU, Buckingham House, Glovers Court, Preston, PR1 3LS Tel | Fax | Seminar 5: Linking employee ownership to reward and performance So what’s changed? This is what colleagues say Click hereClick here (you need to be running slide show)

6 RCU, Buckingham House, Glovers Court, Preston, PR1 3LS Tel | Fax | Seminar 5: Linking employee ownership to reward and performance Remuneration Structure

7 RCU, Buckingham House, Glovers Court, Preston, PR1 3LS Tel | Fax | Seminar 5: Linking employee ownership to reward and performance Benefits and (Potential) Problems Collective enterprise Motivation/innovation Cost control Self-adjusting remun. Peer group impact Reduced mgt cost Recruitment Transparency Development spur Longer perspective Initial legal/tax cost Slower decision-making Risk of “free riders” Disenchanted “top performers” Small company model – James Meade (1975) “employee-shareholder enterprises” c30? BenefitsPotential Problems

8 RCU, Buckingham House, Glovers Court, Preston, PR1 3LS Tel | Fax | Seminar 5: Linking employee ownership to reward and performance Final thought No structure works without genuine employee involvement... but most structures will work with it.


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