In tune with his philosophy that a happy workforce contributes to business success over the long term, Richer Sounds founder Julian Richer is to transfer 60% of his shares in the high street retailer into a John Lewis-style employee trust. According to Richer, “[the company’s employees] know the business, and especially our rather unusual culture, extremely well, and the business is therefore far more likely to flourish under their own steam because of this.”
Employee ownership is a rapidly growing alternative business model (just ask our tax team!) and offers the potential for businesses to improve employee engagement and productivity. There are associated tax breaks for both owners and employees and it can be a useful way, as in Richer’s case, for an owner to decrease involvement in the business without selling to a third party.
The founder of Richer Sounds is handing control of the hi-fi and TV retail chain to staff, in a move that will also give employees large cash bonuses.