# GLOSSARY

Finance Dictionary : Employee Share Schemes

Employee Share Schemes

KEYTAKEAWAYS

Explore Employee Share Schemes, initiatives that enable employees to buy shares in their company, fostering ownership, motivation, and commitment.


CONTENT

DEFINITION

Employee share schemes, also referred to as ’employee share purchase plans’ or ’employee equity schemes’, are strategic programs implemented by companies to provide their employees with the opportunity to purchase shares in the organization. This practice aims to align the interests of employees with the company’s success, fostering a sense of ownership, motivation, and commitment among the workforce.

 

These schemes often involve various mechanisms for employees to acquire company shares, such as stock options, stock purchase plans, or equity grants. They can be structured in a manner that offers favorable terms or discounts to incentivize employee participation.

 

Employee share schemes are widely used in businesses of all sizes and are viewed as a means to attract and retain talent, boost morale, and promote long-term employee engagement.

 

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