RCU, Buckingham House, Glovers Court, Preston, PR1 3LS Tel 01772 885999 | Fax 01772 887336 |...
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RCU, Buckingham House, Glovers Court, Preston, PR1 3LS Tel 01772 885999 | Fax 01772 887336 | [email protected] Seminar 5: Linking employee ownership to reward and performance 10.123 Ownership, performance and reward at RCU - what works for us Gordon Aitken, Director RCU
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Transcript of RCU, Buckingham House, Glovers Court, Preston, PR1 3LS Tel 01772 885999 | Fax 01772 887336 |...
RCU, Buckingham House, Glovers Court, Preston, PR1 3LS
Tel 01772 885999 | Fax 01772 887336 | [email protected]
Seminar 5: Linking employee ownership to reward and performance 10.123
Ownership, performance and reward at RCU - what works for us
Gordon Aitken, Director RCU
RCU, Buckingham House, Glovers Court, Preston, PR1 3LS
Tel 01772 885999 | Fax 01772 887336 | [email protected]
Seminar 5: Linking employee ownership to reward and performance 10.123
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
RCU, Buckingham House, Glovers Court, Preston, PR1 3LS
Tel 01772 885999 | Fax 01772 887336 | [email protected]
Seminar 5: Linking employee ownership to reward and performance 10.123
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
RCU, Buckingham House, Glovers Court, Preston, PR1 3LS
Tel 01772 885999 | Fax 01772 887336 | [email protected]
Seminar 5: Linking employee ownership to reward and performance 10.123
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.
• 6745 capital owning shares
(and 900 options) – 60 per
year of service.
RCU, Buckingham House, Glovers Court, Preston, PR1 3LS
Tel 01772 885999 | Fax 01772 887336 | [email protected]
Seminar 5: Linking employee ownership to reward and performance 10.123
So what’s changed? This is what colleagues say
Click here (you need to be running slide show)
RCU, Buckingham House, Glovers Court, Preston, PR1 3LS
Tel 01772 885999 | Fax 01772 887336 | [email protected]
Seminar 5: Linking employee ownership to reward and performance 10.123
Remuneration Structure
RCU, Buckingham House, Glovers Court, Preston, PR1 3LS
Tel 01772 885999 | Fax 01772 887336 | [email protected]
Seminar 5: Linking employee ownership to reward and performance 10.123
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?
Benefits Potential Problems
RCU, Buckingham House, Glovers Court, Preston, PR1 3LS
Tel 01772 885999 | Fax 01772 887336 | [email protected]
Seminar 5: Linking employee ownership to reward and performance 10.123
Final thought
No structure works without genuine employee involvement
... but most structures will work with it.
