Employee Share Plans: the myths expelled

Article supplied by channel sponsor, Computershare.

It’s pretty likely that everyone reading this has some connection with an employee share plan. Maybe you run one, quite probably you’re in one.

What is sometimes difficult to quantify is ‘why a share plan at all?’

Our gut feeling tells us that companies should offer share plans because they will increase the loyalty, retention and work rate of staff. The same tells us that employees should participate in a plan because shares are a proven long-term investment, they help staff identify with shareholders and make them more determined to contribute to the company’s success. Companies are under increasing pressure to demonstrate a return on investment for share plans, but market data is poor and empirical evidence to support this gut feeling is very hard to come by.

With this challenge in mind Computershare commissioned a research project, via the London School of Economics (LSE), into its own employee share plans.

Click here to read more