Gusto Group empowers staff with Employee Ownership.
Added by Love Business East Midlands | 13 July 2024
East Midlands family-owned business Gusto Group has announced its plans to transition to an Employee Ownership Trust (EOT) as part of its unwavering dedication to inclusivity, collaboration, and the long-term prosperity of its workforce.
Founded in 1992 by Chairman Steff Wright, Gusto Group has demonstrated for more than three decades that it is possible for businesses to enrich the communities they serve. With a focus on sustainable construction and manufacturing, the Group has stayed committed to achieving shared success and fostering a culture of entrepreneurship.
The move to transfer 100% of the ownership to an EOT is aimed at building a legacy for the employees who will be creating the company’s future successes.
Wright says of the decision:
“Approaches from several parties interested in purchasing Gusto Group prompted me to rethink the business’ future. I wanted to find a way for the employees that have worked so hard to build Gusto Group into a £25 million business to be the ones to benefit from its continued growth. I am also passionate about the Group maintaining its identity and ethical ethos. Transferring ownership to our employees was the option that aligned with our company’s values.”
Introduced in the Finance Act 2014, EOTs allow shares to be held on behalf of a company’s employees. Gusto Group's EOT initiative will see 100% of the Group's ownership transferred to an Employee Owned Trust on 31st March 2027, meaning that all employees will share in the ownership of the Group.
All employees, from new starters to those that have been with the company for many years, have now been allocated share options to encourage business growth over the next three years, before the Group transitions to an EOT on 31st March 2027. Wright’s aim is for employees to feel invested in and committed to Gusto Group’s continued success as they then begin to receive tax-free payments related to the value of their share options from April 2027 onwards.
Wright continues:
"By granting employees the opportunity to become shareholders, Gusto Group aims to build a stronger sense of unity, motivation and accountability throughout the organisation."
Gusto Group achieved B Corp status in November 2023 – a demonstration of the organisation’s commitment to sustainable practices and employee welfare. The company has a rich history of community engagement and is known for its Gusto Community Fund, which puts money back into local initiatives and charitable causes as chosen by each employee.
Wright firmly believes that businesses should not solely measure success by profit margins, but also by the positive impact they create for their employees, communities, and the planet.
He concludes,
"By transitioning to employee ownership and gaining B Corp certification, we are continually ensuring that our business strategy matches our values, and that sustainability and shared prosperity remain at the forefront of everything we do.
“I think the business could scale phenomenally under employee ownership. Currently Gusto Group turns over £25 million a year, and with projections showing it could double its turnover within the next three years, I’m extremely excited to see it continue to go from strength to strength and for our colleagues to benefit from this success.”
