Implementing an ESOP business-model in Ukraine

Implementing An ESOP Model In Ukraine

Financial & legal committee's initiative

Description

ESOP (Employee Stock Ownership Plan) is a practice of distributing shares of the company among its employees, which today is used by many world companies. According to this practice, both employees and business owners have a personal interest in the development of the company due to the increase in the value of its shares. In particular, business owners will receive a new tool for attracting and retaining skilled workers, are able to raise funds for a new issue of shares to invest in the business and increase labor productivity, creating a culture of ownership among employees. Company's staff also receive an additional source of income as dividends, participate in a decision-making process and get a sense of "unity" with owners of the company to achieve business goals.

Problem

Due to the absence of ESOP model in Ukraine, companies are deprived of the effective leverage of the impact on the productivity of specialists, which is why enterprises do not realize their full potential.

Some Ukrainian businessmen consider such an approach to the company's property to be risky and unprofitable, and employees usually have insufficiently high financial education and are rather conservative in their views, which is why they are skeptical about innovations related to their profits.

Current Task

Together with the Verkhovna Rada Committee on Industrial Policy, develop a regulatory framework for this initiative and lobby for its implementation. Provide information support to media, public opinion leaders, business representatives and the public.

Goal

Implementation and popularization of this form of corporate ownership in Ukraine, creation of additional motivation for employees of enterprises, including IT-business, and, as a consequence, increase of companies' productivity.