Employee Ownership Trust Update
I wanted to write this post to address some of the concerns that have been raised about the Employee Ownership Trust (EOT). I understand that there remains some confusion about what this means for the future of the company, and I want to do my best to clear up any misunderstandings.
First of all, let me say that the EOT is not a way for anyone to enhance their own financial standing. In fact, a significant sacrifice has been made by John in transferring ownership of the company to the trust. This is something that he has done because he believes that it is the best thing for the company and for its employees in the long term.
The EOT is a trust that is owned by the employees of the company. This means that we, the employees, now own 51% of the shares in the company. The board of trustees is responsible for managing the trust on our behalf.
The board of trustees have a fiduciary duty to act in the best interests of the trust, which means that they have to act in our best interests. There will be an opportunity for anyone who might wish to, to serve on the board in time.
The board of trustees shall be responsible for overseeing the day-to-day running of the company. In time (ie when 51% of the shares have been paid for), they will be responsible for making decisions about how to invest the employee share of the company’s profits, and how to distribute thesm. We estimate it will be 24-36 months before this is likely to happen but this is entirely dependent on the performance of the company throughout this time.
I know that some of you may be concerned about the future of the company now that it is owned by the EOT. However, I want to assure you that the company is in good hands and John is still fully invested in the business. The board of trustees is committed to running the company in a way that is in the best interests of all of us, the employees.
I hope this has helped to clarify some of the issues surrounding the EOT. If you have any further questions, please do not hesitate to contact me.
Gerry