Roundtable Review: Expanding Business Ownership
On July 20th, 2023, we held a Roundtable discussion on Expanding Business Ownership for Brick & Wonder Pro & Council members.
As your business grows, it becomes increasingly critical to retain senior team members that have deep institutional knowledge, valuable client and collaborator relationships, and tailored experience in core business activities.
One of the best means available to promote retention is a structured business ownership program, which gives senior leaders a stake in business outcomes.
Push and pull dynamics apply – gaining the rewards that come with the business’s success, whilst also being on the hook when the business isn’t working properly – two powerful motivators that can keep senior staff on board for years to come.
In this Roundtable, we discussed the notion of expanding business ownership by extending Profits Interests or Shares (of different kinds) to senior team members.
I acquired shares in an investment bank I co-founded. The shares I earned were an incentive for retention and it soured me on the value of the shares. It strikes me that minority ownership needs to include control, co-dependency, and collaboration.– General Contractor
I was granted non-voting B-shares in my previous company. It was a sticky proposition. It kept us there a long time. For an owner, if the goal is retention, it helps!– Materials Supplier
… we’ve started getting better at working on the business instead of just in the business.– General Contractor
When I was a minority owner I saw the owners spending too much on XYZ or on their own salaries. But as the owner I see the reverse – why would I pay you more when I’m not paying myself?– Furniture Supplier
ABOUT OUR ROUNDTABLES
Our monthly roundtables are exclusive to members and designed specifically to sharpen minds, increase knowledge and develop new perspectives in the real estate industry.
Members dive into a new topic every month with an accomplished and diverse peer group, raising and answering tough questions and gaining valuable insights.