Unity Trust Bank ups staff stake with new share ownership plan

STAFF at Birmingham-based Unity Trust Bank are to receive share certificates confirming they own a stake in the organisation.

The bank, one of the UK’s leading specialist banks for social economy organisations, said it was aiming to reinforce its social values and its commitment to employees.

It said the Employee Share Ownership Plan (ESOP) would ensure staff shared in the bank’s success now and in the future.

Richard Wilcox, Managing Director at Unity Trust Bank, said: “This is an important move in our commitment to Unity’s staff and our recognition of their vital role in building the bank’s continued success. Employee ownership gives staff a significant and meaningful stake in their organisation. It helps to build successful businesses in which employees enjoy working.
 
“As a socially responsible bank founded on strong social values, this is a natural step for Unity. It reflects our low staff turnover and our focus on strong customer service rather than sales – a core value both for our existing staff and for those attracted to joining us from the corporate world.”
 
The plan involves the creation of an Employee Benefit Trust that will acquire and distribute shares to staff. The bank has provided a £50,000 gift to the Employee Benefit Trust to set up the scheme and acquire shares from the current shareholders, which include trade unions and the Co-Operative Bank.
 
All staff members who have worked at Unity Trust Bank for one year will receive an initial gift of 100 shares. Those who have been at the bank for 10 years will receive a further 100 shares. Through the annual profit sharing scheme staff can also opt to receive shares instead of cash. Trustees of the Employee Benefit Trust will include staff representatives and an independent trustee.
 
Unity Trust Bank was a pioneer in the early ESOP market in the UK during the 1980s and successfully funded a number of schemes from borrowers across a broad spectrum of business. It is currently exploring new lending structures including ESOPs to drive growth in a range of socially responsible areas.
 
“Our people are our best asset. Almost 100% of staff have signed up to the plan, which I believe is a great indicator of their loyalty and commitment to the bank and to making a sustainable contribution to society. We will continue to reinvest our profits into the business to ensure we can support our customers in the future, while also sharing the wealth with our committed workforce and other civil society shareholders,” added Wilcox.