ESOP and BEE Ownership Advisory Insights
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Three percent of revenue for Level 3 BEE: a good idea, but first clean up the fronting industry
A new private-sector proposal has reignited debate about how South Africa might simplify transformation. The concept is simple: companies pay 3% of gross revenue in exchange for automatic Level 3 B-BBEE status — a neat alternative to the complex scorecard system. On...
Black private equity funds – Assessing substance over form
Published in Accountancy South Africa - read here. The Role of Private Equity in B-BBEE Transformation Private equity (PE) funds have long played a pivotal role in driving transformation, particularly through their structured investment approaches. In contrast,...
No ‘single fix’ for SA’s talent retention issue
Published in Bizcommunity - read here. With South Africa’s skills shortage, the high cost of employee turnover and increasingly mobile skilled professionals, retention of top talent remains a cornerstone of organisational success. This is even more relevant in the...
Accounting Standards for ESOPs: What Companies Need to Know
In South Africa, ESOPs require careful consideration of IFRS 2, IFRS 10, and IAS 19. Getting the classification, valuation, and disclosure right is essential for compliance, transparency, and long-term impact. This FAQ addresses the key accounting issues
10 Compelling Reasons for Employee Ownership
ESOPs are a powerful tool to address some common business challenges. Having advised on a multitude of ESOPs across various industries, we have seen a number of benefits shine through. ESOPs boost engagement, retention, and drives business success.
Understanding BEE Ownership: Your Top Questions Answered
Transcend Capital’s client base mostly consists of multinationals that are or wish to operate in South Africa. Many are familiar with Broad-based Black Economic Empowerment (B-BBEE) however questions are frequently asked about B-BBEE. Read the FAQ’s for clarity.
Trade tensions: Can ESOPs create common ground?
Bridge, not battleground: Employee ownership is embraced in both countries and can soften trade frictions while advancing shared-value growth. Bipartisan resonance: US polling shows strong cross-party preference for employee-owned firms; SA policy (B-BBEE, Competition...
Why senior leaders must be on board to drive a successful ESOPs
Achieving ESOP success needs the full commitment and expertise of senior leaders. Working together, they can create a scheme that aligns with company goals, adheres to regulatory requirements, and offers meaningful benefits to employees.
South African course to help raise local Employee Share Ownership Plans standards
Internationally, the advantages of ESOPs are widely recognised, with institutions like Rutgers University, the University of Oxford, and the London School of Economics (LSE), offering training to assist professionals implement them effectively. These programmes cover...
Opinion: 4 key steps to crafting an ESOP that strengthens your SA investment pitch
The South African Competition Commission's revision of its public interest guidelines has increased the importance of local ownership in companies that attract foreign investment. Mergers and acquisitions that significantly enhance ownership by “historically...
How Broad-based Ownership Schemes could mitigate the crippling impact of US aid cuts
When President Trump unexpectedly slashed US foreign aid, few anticipated the far-reaching consequences for South Africa—particularly in the fight against HIV/AIDS. With more than half of HIV programme funding sourced from US aid, the country faces a healthcare crisis that could…
Government’s proposed Transformation Fund
Published in IOL: South Africa’s Department of Trade, Industry, and Competition (DTIC) has unveiled plans to establish a R100 billion Transformation Fund aimed at fostering inclusive economic growth, which the country so desperately needs.
5 BEE trends transforming South Africa
There is no question that the ways in which we address transformation now will shape Published in Bizcommunity: South Africa’s future. As the transformation landscape evolves, these five Black Economic Empowerment (BEE) trends will be key in ensuring that this future is sustainable….
Transformation fund | R100bn set aside for black-owned businesses
eNCA interview – The Department of Trade, Industry, and Competition has unveiled plans to establish a R100-billion Transformation Fund which aims to advance South Africa’s constitutional commitment to economic redress and inclusive growth for black businesses.
How an Equity Equivalent Program could pave the way for Starlink’s entry into South Africa?
The Morning Show – eTV Interview with Bruce Hunt Host: Welcome back to The Morning Show right here on ETV. It is Think Tank Tuesday, and today we’re bringing you another inspiring story from our Real People in Technology series. Joining us live via Zoom is Bruce Hunt,...
Starlink in South Africa: why equity equivalent programmes makes sense
Instead of focusing solely on direct ownership, Starlink could invest in initiatives that directly benefit black-owned businesses and communities - read the TechCentral article here. South Africa’s pursuit of digital inclusion faces a significant hurdle: the high cost...
ESOP communication: key ingredients for successful employee ownership
Employee Share Ownership Plans (ESOPs) are a powerful way to align the interests of employees with the success of a company. Employee ownership can foster a strong sense of ownership, improve employee engagement, and potentially enhance company performance. An ESOP’s...
Employee Share Ownership structure can help pave way for M&A approval
Large multinational transactions that need approval from SA’s Competition Commission can benefit greatly from the inclusion of employee share ownership plans (Esops), which can help address the commission’s public interest considerations and provide other benefits to the..
11 things to consider before implementing ESOPs in South Africa
ESOPs in South Africa offer multinationals a way to align employee interests with business growth while meeting BEE compliance requirements. This guide outlines the key steps for structuring, implementing, and sustaining successful ESOP programs.
Employee Ownership is a no-brainer
ESOPs in South Africa are a strategic tool helping multinationals address top challenges such as talent attraction, performance enhancement, and achieving BEE ownership goals. This article explores how employee ownership can drive business success, boost retention, and align with B-BBEE compliance requirements.
Employee Share Ownership Plans can become a true driver of economic growth?
Moneyweb interview: How can Employee Share Ownership Plans (ESOPs) go beyond ticking the compliance box and become a true driver of economic growth? The key lies in aligning employees, managers, and shareholders to create meaningful, long-term value across industries.
South African companies can create shared value through employee ownership
Published in the Daily Maverick: Employee share ownership plans have been underused as a strategy to galvanise economic growth in South Africa. They can be a mechanism to drive inclusive economic growth while broadening the reach and impact of black-based economic empowerment ..
The GNU can drive new growth and value through transformative employee ownership
Published in the Daily Maverick: The number of employee share ownership plans in South Africa has grown in recent years. These have enhanced employee participation in the corporate sector and are pivotal in Competition Commission approvals. South Africa’s new...
Competition Commission: Public Interest Considerations
Investing in South Africa as a Multinational For many multinational companies, investing in South Africa can challenge even the most experienced international teams in novel ways. Specifically, a multinational that has identified a South African company to acquire,...
ESOP Accounting in South Africa: Best Practices
Published in SAICA magazine: Employee Share Ownership Plans (ESOP’s) have become increasingly common for multinational, listed and unlisted companies operating in South Africa as a way to attract, retain, and reward their employees. ESOP’s can also be effective...
BEE Ownership for Multinationals – An Introduction
Quick Summary: B-BBEE Ownership for Multinationals in South Africa Why it matters: Winning work in SA requires credible B-BBEE; Ownership is heavily weighted. How to comply: Black investors, ESOPs/broad-based schemes, Statement 102 sale-of-assets, or Equity...
ESOP – Achieving BEE Ownership Through Employee Share Ownership Plans
Employee ownership provides an attractive option to address B-BBEE ownership in a way that can align interests and boost employee engagement and retention at the same time. ESOPs typically involve shareholding by a trust, through which eligible employees indirectly...
Why Employee Ownership must be considered as part of your BEE strategy
ESOPs for Effective BEE Strategy Compliance ESOPs (Employee Share Ownership Plans) involve enabling employees to share in ownership of the company they work in. Employee ownership is gaining momentum in South Africa as more companies recognise the benefits it offers....
ESOPs and the Competition Commission’s Public Interest Considerations
Large multinational transactions that require Competition Commission approval can benefit greatly from the inclusion of Employee Share Ownership Plans (“ESOPs”), which can serve to address the public interest considerations of the Competition Commission and to provide...
Why are Employee Ownership Plans (ESOPs) in South Africa relatively uncommon?
Why are ESOPs in South Africa relatively uncommon? Moneywebmidday interview with Jeremy Maggs (JM)- Why ESOPs remain relatively uncommon in SA? Employee Share Ownership Plans (ESOPs) in South Africa remain underutilised, despite their potential to enhance employee...
Employee Ownership – A Missed Opportunity to Drive Transformation
Research indicates that when employees feel a sense of ownership in the organisation they work for, they have increased job satisfaction and show more commitment and loyalty which then leads to improved productivity, innovation and profitability. It’s for this reason...
Sale of Assets (SOA) to Black Investors an Effective BEE Ownership Technique
What it is: Under Statement 102 of the B-BBEE Codes, companies can earn Ownership points without selling equity in the parent company by selling a business, division, property, subsidiary, or shares to Black investors. How points are calculated: Ownership credit =...
What public interest had to do with the Burger King acquisition controversy
The recent decision of the Competition Commission to block the proposed acquisition of Burger King in South Africa by a US-based private equity firm has sparked intense debate in South Africa, and shows how focused the regulator is on promoting Black ownership. In a...
DTIC’s Certainty On Broad Based Ownership Schemes And Employee Share Ownership Plans
Minister confirms BBOSs and ESOPs count for ownership under B-BBEE. Evergreen ESOPs explicitly recognised as valid. Structure schemes around a class of persons (“all black employees”) rather than named individuals. Defined class or preset formula required for...
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