Social media and online community management specialist Quiip is introducing an employee share ownership plan (ESOP) in collaboration with two senior staff members.
Lauren Piro, people and culture director, and Larah Kennedy, client services director, are the company’s first employee owners.
Quiip’s ESOP will enable employees to become owners by acquiring a stake in the business. A rarity — ESOPs are not common among Australian companies.
Alison Michalk, Quiip CEO, said this has been in the works for nearly two years.
"Employees are integral to our success, and I believe in the redistribution of profits," Michalk said.
"I'm proud as it's a unique initiative that not many companies undertake. Leading the way as a B Corp is a challenge that keeps me going!"
The company wide rollout will take place over the next two years.
Quiip recently conducted an employee stock ownership plan Ask Me Anything (AMA), providing further details about the ESOP. The ESOP empowers employees to collectively acquire up to a 30% ownership stake in the business.
Some important points to note regarding the ESOP:
- Eligibility requires a minimum tenure of 3 years, and employees are encouraged to stay for a few more years to maximise their value.
- Only active employees can have a stake in the business. If an employee decides to exit, Quiip will repurchase their shares at the current valuation.
- The business will be revalued every year against using an independently methodology adopted at the beginning of the ESOP.
- Profitable returns on percentage stake are paid at the end of each financial year.
- Employees are advised to seek professional financial advice prior to investment.
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