Plan B generates more staff ownership

Perth-based boutique wealth management organisation Plan B intends to better align the interests of its employees with the company through its initial public offer (IPO) and listing on the stock exchange by using it as a means to increase the equity holdings of its staff.

To this end, Plan B group managing director Denys Pearce revealed that there were two schemes in the IPO scheduled for July 20 aimed at increasing employee shareholdings in Plan B.

“What we’ve done in the IPO is put in two schemes. One is what we call the executive and adviser share purchase plan, and that’s where we want the key people in Plan B to have ownership of the company,” he explained.

According to Pearce, the shares offered via this scheme have all been taken up.

The second scheme incorporated into the IPO is an extension of the economic value added (EVA) initiative Plan B introduced five years ago whereby employees were allocated a share of the excess return on capital the company has been able to generate.

“That led staff to say the only thing we’re not getting through EVA is the re-rating of the company by the market. That’s going to the shareholders,” Pearce said.

“So we’re saying to them now you can purchase equity in Plan B … and also participate in the stock in the uplift which may occur,” he added.

Pearce revealed that a few days out from the finalisation of the second scheme the applications for it had exceeded 100 per cent of the shares allocated.

“Post-IPO, we anticipate the portion of the company that’ll be owned by the existing shareholders, managers and the new staff that come on board will be somewhere around about 53 per cent of the company,” he said.