A one off transformation of ownership designed to make staff think of it as their company.
Stephanie Shirley's framework, from Let It Go, pp. 179 to 183.
Board approval
Agree to sell a substantial proportion of the Founder's shares to the workforce.
Prospectus and publicity
Prepare the legal and financial documents and run an internal campaign.
Double voting rights
Amend the articles so shares held by current workers carry two votes.
Offer to all
Offer 30 per cent of the founder's remaining holding at £2.70 a share, with a 50 share minimum, to over 1,000 staff.
Set a floor
Require the workforce to invest at least £1m between them for the sale to go ahead.
From chapter: 17. Losing My Grip, pp. 179–183
At the 1987 silver jubilee the company pays its first dividend and gives every worker a share. The company changes its name to FI Group, grows by acquisitions and sees its quality standard adopted by NATO. A new chairman, Sir Peter Thompson, argues for a single 'Big Bang' share sale rather than piecemeal gifts. In September 1991, 1,000 staff are offered shares, and the workforce ends up controlling the company on major issues.
