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EFES NEWSLETTER - JUNE 2024
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First
ESOP/EOT-style business transfer to employees
in Ireland
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After
Great Britain, after Germany, here is a third European
country. A first ESOP/EOT-style business transfer is
reported in Ireland.
The ESOP mechanism has since 1974 been used extensively
in the USA. In 2014, the UK introduced the EOT mechanism,
a kind of simplified ESOP.
These
collective employee ownership mechanisms enable the
ownership of a company to be sold to employees without
them having to pay a cent out of their own pockets.
Now
Ireland has followed suit: Wolfgang Digital has become
the first Irish-owned company to transition to employee
ownership via an Employee Ownership Trust (EOT).
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Wolfgang
Digital marketing company was founded by Alan Coleman
in 2007 and employs 70 staff today.
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The
"Wolfgang Talent Trust" has acquired 25% of
the shares in Wolfgang Digital and all employees who
have been working for the agency for more than 12 months
have become “partners” in the Trust. This will
allow them have a say in how the agency is run while
also giving them a share of profits every three months.
In addition, a portion of profits each year will be
used to fund future share purchases by the trust which,
all going according to plan, will become the majority
owner within 10 years.
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Each
team within the business has elected a representative
who can bring their insights and ideas to any decision-maker
within Wolfgang Digital. The employee representatives
will elect trust board members from among them who will
be the ultimate decision-makers on behalf of the trust.
More
information about Wolfgang Digital and the new Wolfgang
Talent Trust
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Press
review
A
selection of 31 remarkable articles in 9 countries in May
2024: Bulgaria, Canada, Finland, France, Ireland, Italy, Romania,
UK, USA.
Bulgaria: Employee share ownership is attracting increasing
interest in Bulgaria.
Canada: Looking forward to a first “made in Canada”
Employee Ownership Trust.
Finland: The popularity of Finnish "personnel
funds" has increased in recent years.
France: New employee share plans for Voltalia, for
Société Générale, for Engie, for Bel, for Ipsen, for Tournaire.
Employees of the Morassuti printing works are trying to take
over their business by creating a workers' coop.
Ireland: Wolfgang Digital Becomes the First Irish Employee
Ownership Trust
Italy: The CFI is the financial body established by
the Marcora Law in 1986; in 2023, 10 worker buyout projects
were supported. Misery of philosophy.
Romania: Employee share ownership is attracting increasing
interest in Romania.
UK: Valloop Exchange platform is digitising the transition
to employee ownership. Thanks
to the Employee Ownership Trust formula, one or two new SMEs
are transferred to their employees every day. This month,
among others, the case of: Wildfire Technology, Tops Day Nurseries,
T&N Gilmartin Construction, Parkhouse Bell Recruitment,
Plus Finance, Babel Public Relation, Veterinary PR, Planet
Logistics. RM² presents the reasons to consider an all employee
Share Incentive Plan.
USA:
Private Equity: KKR is embarking on an ambitious plan to take
its employee ownership program worldwide. Why employee-owned
companies make sense in manufacturing.
The full press review is available
on:
https://www.efesonline.org/PRESS
REVIEW/2024/May.htm
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A
political roadmap for employee ownership in Europe
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