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Ownership, performance and reward at RCU - what works for us

Ownership, performance and reward at RCU - what works for us. Gordon Aitken, Director RCU. About us – briefly!. Colleges and training companies. Private sector clients. Customer surveys; staff surveys; market analysis; data mining; labour market info;

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Ownership, performance and reward at RCU - what works for us

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  1. Ownership, performance and reward at RCU - what works for us • Gordon Aitken, Director RCU

  2. About us – briefly! Colleges and training companies Private sector clients Customer surveys; staff surveys; market analysis; data mining; labour market info; stakeholder perceptions; income generation; customer relations management.

  3. Previous Model (2002-April 2009) • Managing Director • Deputy Director • EBT nominee • 2 Non-Execs • Right to attend for all other staff • Salary bonus (equal for all staff) • EBT group benefits (caravan, events) • Reinvestment

  4. Current Model (April 2009 onwards) • Share Ownership • 17 voting shares awarded after 1 year’s service. • 6745 capital owning shares (and 900 options) – 60 per year of service. • Managing Director • 3 Exec Directors (Elected A shareholders) • 3 NEDs • Right to attend for all other staff • Dividend (equal for all staff) • Staff Benefits Budget (group benefits) • Reinvestment

  5. So what’s changed? This is what colleagues say Click here (you need to be running slide show)

  6. Remuneration Structure

  7. Benefits and (Potential) Problems Benefits Potential Problems • Initial legal/tax cost • Slower decision-making • Risk of “free riders” • Disenchanted “top performers” • Small company model – James Meade (1975) “employee-shareholder enterprises” c30? • Collective enterprise • Motivation/innovation • Cost control • Self-adjusting remun. • Peer group impact • Reduced mgt cost • Recruitment • Transparency • Development spur • Longer perspective

  8. Final thought • No structure works without genuine employee involvement ... but most structures will work with it.

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