Adonis Diaries

Posts Tagged ‘fiduciary irrevocable contract

I am an employee:  And I am sharing in the business

This is not a new business concept or new legal structure; employees participating as shareholders in enterprises are making headway and strongly impressing financial institutions with the performances of these enterprises.

Employees as shareholders enterprises that I would label (E-SE) are more performing by 10% then the highest 100 ranked companies in England.  They already contribute $35 billion in the British economy.  The ESE create more employment and quicker than traditional enterprises and are far more resilient in economic downturns.  They generate better clients’ satisfaction which increase added value to the benefice of employees.

Every year, all employees receive the same percentage in benefice with respect to their salaries from the lower to the highest ranked worker.  For example, an 8% increase in profit is equivalent to an entire month salary, irrespective of the other benefices that employees are entitled to.

In the turn of the 20th century, John Spedan Lewis said that

the way capitalism is applied is a perversion of the proper mechanism for doing business.  It is perfectly abnormal that in such a capitalist system there should exist millionaires while workers live in slums.  It is obscene to pay dividends to a few shareholders who do nothing while workers barely earn enough to survive.

John Lewis grandson, Spedan Lewis, discovered at age 21 that his father, his brother and he were making more money than the combined salaries of all their employees.  Thus, Spedan sold his shares in the enterprise on Oxford Street and became director of Peter Jones, another enterprise of the family.  Spedan instituted the ESE concept and within 5 years the Peter Jones enterprise emerged from $15,000 deficit  to over $35,000 profit.

Spedan created the John Lewis Partnership Limited, a fiduciary irrevocable contract, that delivered the property to the employees with the attached responsibility and management.  The employees are part of the administrative council and play active roles in all decision procedures.

Actually, employees have a lot to say and plenty of initiatives and creative programs.  For example, when employees decided to have a day off after Christmas Day they didn’t work.

Employees decide on what to do with benefice to the common welfare of the enterprise such as building chalets to rent at affordable prices during vacations.  ESE enterprises do not witness turnovers and employees fired for stealing or for minor crimes are rare. You don’t experience the traditional backstabbing to getting ahead.

Employees work for the long term vision; the goal is not quick money making but adding steady value to the enterprise.

Why ESE is not that rampant in business communities?

Simply because it is hard work to institute this new system before it works smoothly.  It is the passion of a few hardy hearts and minds to take on the challenge in risky start ups that represent qualitative fair play among employees and owners in businesses.  ESE is a new culture for workplace and how to distribute wealth equitably by sharing responsibilities, communication, transparency, and dividing profit.




September 2022

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