Shareholding model

A colleague of mine said that the fact that you can get shares in a company compensates for the lack of job security. I thought that I had a secure job!

Can you explain this concept of shareholding to me?

There will never be job security. You will be employed as long as you add value to the organization, and you are continuously responsible for finding new ways to add value.

In return, you have the right to demand interesting and important work, the freedom and resources to perform it well, pay that reflects your contribution, and the experience and training needed to be employable here or elsewhere. Ultimately, an objective of the organization is to maximize shareholder value and the question is 'how' this is to be achieved?

Your company's vision endorses a quest to maximize the creation of sustainable wealth through effective ownership and participation. In the light of the fore going fiduciary duties, the following points would characterize the application of the “Entrepreneurial Shareholding Model”.

Shares will only be issued or purchased by the company when growth has occurred and is reflected in the company's profits.

This may require the company to be cash positive and having cash assets which can be converted into cash. The percentages that will be used to distribute the profit and shares will be set by a process of evaluating economic value and negotiating and apportioning of shares accordingly.

In accordance with the your company shareholding model, shares can be issued to those employees that are considered to have made an entrepreneurial contribution to the growth of the business.

To establish, grow and direct a company into an organization capable of sustainable wealth creation requires a process.

An integral part of this process is risk management, including risk assessment. When assessing the entrepreneurial energy contributed by individuals to the organization, the following criteria are applied:

On the other hand, your company recognizes that the sharing of wealth is a natural progression for entrepreneurs. The company strives towards Holistic Compensation for contributions made; where it is not only about what you take home each month, but where compensation fulfills needs on different levels for the individual, while also contributing towards building the organization. Converting energy into equity is one way in which this can be achieved.