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Ownership remains one of the more challenging pillars on the BEE scorecard, particularly for multinational companies. Employee Share Ownership Plans (ESOPs) are a tried and tested approach to successfully achieve BEE Ownership recognition, and at the same time strengthen the employee value proposition.

With Ownership being a Priority Element, achieving a respectable BEE status without Ownership is extremely difficult. Many South African businesses have successfully implemented ESOPs to address BEE Ownership. This typically involves establishing a vehicle which will acquire shares in your company, and through which employees are able to participate in the success of the business.

With over 14 years of experience in BEE-compliant ESOP design and implementation, as well as ESOP communication, Transcend can help you achieve ESOP success and enable sustainable BEE Ownership recognition.

There are various benefits of employee ownership, some being:

  • Broad-based BEE Ownership that is close to home – benefitting the people that are involved in making the business a success
  • Aligning employee and shareholder interests
  • An improved employee value proposition – enabling stronger attraction and retention, and strengthening employee relations

To successfully implement an ESOP and achieve BEE Ownership recognition, care must be taken to:

  • Structure the scheme and rules to make business sense
  • Manage employee expectations – typically through tailored communication/training
  • Ensure that the BEE Codes requirements for ESOPs are met

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