Creating a sense of ownership
by Adrian Kinnersley, managing director of Twenty Recruitment
We know from our previous experience the difference between simply working for a company and having an equity stake in the company. We wanted to recreate that feeling for the directors running each segment of our business.
We wanted to offer directors a different proposition- almost like finishing school for entrepreneurs. After reviewing several options, we developed an Enterprise Management Incentive (EMI) option scheme, giving each group of employees a share class and options within it.
There is then a direct correlation between the profit that they bring in and the percentage of the share class that they own.
In practice, this means that directors of each of the business units have their own profit and loss account. Directors, and their respective teams, receive the standard group commission on each placement. The directors get an annual bonus based on the profit generated over the year and receive additional equity relating to the profits left after the bonus.
This sort of share scheme enables directors to really thrive in their own right and to make a lot of money, which is why it works for us at Twenty everyone here is entrepreneurial, capable and committed to building a successful business.
Whats more, everyone at Twenty becomes a shareholder after one year no matter what their position. Giving your people some skin in the game is a sure-fire way of keeping them interested and busy!