ABRC-ESOP
Thursday, March 27, 2008
Growing Interest in ESOPs off-Shore
The American ESOP cconcept intall by companies like ABRC is gaining intertest by other countries. Below is an excerpt from an article posted in http://www.arabianbusiness.com/. It first discusses the success of ESOPs in the U.S and then goes on to discuss the advantages of creating the ESOP opportunity in UAE.
Staff ownership could boost profits
Lynne Roberts on Thursday, 27 March 2008
Gulf firms could boost profits, increase staff loyalty and survive for longer by giving employees a financial stake in their business, a group of experts said on Wednesday.
Companies with Employee Stock Ownership Plans enjoy a range of benefits, including increased staff loyalty and improved corporate financial transactions, according to research revealed ahead of a seminar on the issue next month.
A study of ESOP firms found sales, employment and profitablity was around 2.4% higher than companies without the scheme. 82% of companies said revenue increased after applying ESOPs, while 72% indicated they saw an increase in profitability.
Employee Stock Ownership Plans are currently estimated to hold more than half a trillion dollars in assets, and cover over 10 million workers in the US alone.
Stock ownership by employees in the Gulf region is rare, however, where around 70% of privately held companies are family owned and run largely by expatriate management.
Click Link to see complete article http://www.arabianbusiness.com/514852-staff-ownership-could-boost-profits
Staff ownership could boost profits
Lynne Roberts on Thursday, 27 March 2008
Gulf firms could boost profits, increase staff loyalty and survive for longer by giving employees a financial stake in their business, a group of experts said on Wednesday.
Companies with Employee Stock Ownership Plans enjoy a range of benefits, including increased staff loyalty and improved corporate financial transactions, according to research revealed ahead of a seminar on the issue next month.
A study of ESOP firms found sales, employment and profitablity was around 2.4% higher than companies without the scheme. 82% of companies said revenue increased after applying ESOPs, while 72% indicated they saw an increase in profitability.
Employee Stock Ownership Plans are currently estimated to hold more than half a trillion dollars in assets, and cover over 10 million workers in the US alone.
Stock ownership by employees in the Gulf region is rare, however, where around 70% of privately held companies are family owned and run largely by expatriate management.
Click Link to see complete article http://www.arabianbusiness.com/514852-staff-ownership-could-boost-profits
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