Brewdog: Free Shares & Profit Sharing doesnt address key area of concern

Brewdog: Free Shares & Profit Sharing doesn’t address key area of concern

Brewdog has announced plans for free shares and profit sharing for employees. Brewdog have now published details:

https://www.brewdog.com/uk/brewdog-blueprint

In essence 750 salaried employees (Brewdog employs 2,200) will receive shares which Brewdog say might be worth £30K a year over 4 years. Its not certain. The shares will initially be held in trust (common in such schemes) and can be sold when Brewdog launches an IPO for whatever value they trade at.

The remaining employees will share profits from the bars they work in. Brewdog says this could amount to £3-5K a year. Such schemes depend a lot on the criteria which determine how they pay out- for example, how is the profit worked out.

Brewdog describe these moves as ‘innovative’. I’m not an expert in the hospitality sector-aside from drinking and eating in it obviously- so that may be right, although Wetherspoons has had an employee share scheme since 1998. They are quite common in the private sector however often (but not always) offered to promote staff loyalty in preference to recognising a union.

It may be that they will help staff retention certainly, although experience suggests that for many the core issues of decent wages and conditions matter a lot more than share handouts and profit sharing which are always uncertain things.

My private sector employer offers free shares on an annual basis and a yearly bonus but trade unions are also recognised. Its understood that while the shares and bonus have their place feeling content at work with an employer that behaves reasonably is more important to many,