AUSTRALIAN EMPLOYEE OWNERSHIP ASSOCIATION
(ABN 45 654 511 849).
GPO Box 2649, Sydney, NSW, 2001.
Phone and Fax: 02 4341 5170
Website: http://www.aeoa.org.au
Email: info@aeoa.org.au
Media Release 4th January 2011
The AEOA “ESOP of the Year Award” 2011
The Australian Employee Ownership Association (AEOA), Australia’s only non-profit association supporting and promoting the development of Employee Share Ownership Plans (ESOPs) throughout Australia, has great pleasure in announcing the “ESOP of the Year Awards” for the year 2011.
The awards in two categories recognise the achievements of companies who have successfully introduced what is termed “broad-based employee share ownership plans” in Australia.
The winners are:
- BP Australia Pty Ltd – Best Employee Share Ownership Plan in a company with more than 200 employees.
- LJH Commercial-Central Coast - Best Employee Share Ownership Plan in a company with less than 200 employees.
The awards were determined by an independent judging panel comprising:
- Mr Bill Patullo, consultant, former Human Relations Manager, BHP Ltd; and
- Mr Mike Sewell, Managing Director of Market Group Investments Pty Ltd, a company investing in SME’s.
The judging criteria were based on plans which:
(a) were broadly based, that is, open to the majority (if not all) employees of the organisation;
(b) had involved effective communication procedures (for example, handbooks, presentations, online communication); and
(c) encouraged participation of employees as owners, and maximised take-up rates for the plan.
BP is committed to employee share ownership with share plans in more than 60 countries and in Australia the BP Employee Share Plan has been in place since 1990. It is a matching plan where the company offers one free share for each share an employee purchases or otherwise commits to the plan up to a maximum value determined each year. In 2010, the maximum value was $3,400. In the 2010 employee share plan offer, 76.4% of the 1800 BP employees in Australia took up the offer. In addition to receiving the free shares, participants are entitled to dividends and voting rights on the shares and other benefits offered to BP shareholders including dividend re-investment. The offer is generally made each year and many employees have accumulated material shareholdings in the company over multiple offers which reinforces the objective of creating alignment between employees and shareholders.
LJH Commercial – Central Coast is a small commercial real estate agency of eight staff. It’s ESOP is a “Peak Performance Trust” which is used both as a Staff Retention Plan and a Succession Plan for two major shareholders approaching retirement age. Six of the staff are in the Trust at present (a take-up rate of 75%). Participation is by invitation. Objectives of the ESOP are being achieved as no Trust members have left the company. The succession objective is longer term in nature as the Trust increases it’s shareholding in the company. The ESOP is currently providing strong motivation for all staff to improve and grow the business with the Trust members now thinking and working like “owners”.
Director, Ty Blanch concluded “We have created a more understanding team of people, and added value to the individual’s performance congruently.”
The AEOA announced the Awards at its Annual General Meeting in Sydney on 9 December 2010. The Awards recognise the best examples of ESOPs at a time when Australian companies are experiencing rapid growth in employee share ownership.
The AEOA congratulates the boards and staff of BP Australia and L.J.Hooker Commercial Central Coast as worthy winners of the 2011 ESOP of the Year Awards.
Alan Greig
President, AEOA
Ph.02 9817 8586
Sydney Office:
