b'ACCOUNTING COLUMNpurchase be made immediately, or be Would you like to share profits withHaving a culture, or being willing all your employees, or just a certainto develop a culture, wherebydone over time? Will a bonus system group? Some companies only wantdecision making is decentralized andbe used to help employees pay for to share with their key employees,management is engaged. their shares, or do they have to come while others prefer to share with allup with the funds themselves? Are their employees, and the reasons forCreating an ownership structurethe owners willing to help employeesdoing so vary greatly. that allows for employees to share inbuy in or not?the growth of the company, without How closely should profit sharingowners needing to give up control.Having an educational program in be tied to corporate performance? Are the leaders willing to develop aCreating a program that acts as aplace to help employees understand how the plan, and ownership, work. profit-sharing system that is closelycatalyst to drive corporate growthFor example, not all employees are tied to specific performance areas, orand provides employees with theable to clearly distinguish between is the sharing more subjective? ability to say we are doing thistheir future rights as minority together instead of I am doing itowners and simply remaining good It is possible to combine these outcomesfor them. This is a major benefit ofemployees and focusing on their day-and develop a system that answers allemployee ownership. to-day responsibilities.the questions, but any solution, no matter how complex or simple, shouldDeveloping a flexible ownership Both profit- and ownership-sharing specifically address these questions. structure from the outset thatprograms have enormous value in the can evolve with the needs of theright situations. Spending the time TIPS FOR A business and the owners. In this way,upfront to plan and clarify the needs of ownership could eventually shiftthe business, its owners and employees SUCCESSFUL TRANSITION entirely to employees along a clear,will go a long way to help develop a Employee ownership programs can bepre-determined plan. structure and implementation plan that autonomous or combined with profit- makes the plans successful.sharing programs. Generally, theyHaving a system and methodologyallow for all or only certain qualifiedfor how employees will be able to employees to become direct owners inobtain their shares. Will they have toFor more information, contact Rohan Jacobs, the company. Critical factors which leadpay full market value for such shares,Partner, MNP Kelowna at 250-979-1732 or to successful ESOPs include: or a discounted value? Will the fullrohan.jacobs@mnp.ca.Lay your foundation for continued successYou can keep growing and boost your efciency, even in this economy. Were here to help you get started.Kubby Mann, CPA, Senior Manager|778.644.5250|kubby.mann@mnp.caMNP.caSICA CONSTRUCTION REVIEWFall 202423'