ESOP and BEE Ownership Advisory Insights
Uncover the Latest Insights and Expert Guidance in
ESOP and BEE Ownership Advisory
We’re in leading publications
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.
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 employee ownership schemes create common ground?
The current tensions between the United States and South Africa run far deeper than any single issue. Disagreements over South Africa’s stance on Gaza and other foreign policy elements have strained diplomatic relations.
Why senior leaders must be on board to drive a successful ESOP
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 ESOPs 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 critical..
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: highway to growth or pothole?
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?
“Starlink’s arrival in South Africa could transform access to connectivity in rural areas,” said Bruce Hunt, Managing Director at Transcend Capital, in an interview on eTV’s The Morning Show. “Through Equity Equivalent Programs…
Starlink in South Africa: DTI equity equivalent programme
South Africa’s pursuit of digital inclusion faces a significant hurdle: the high cost of broadband access, especially in underserved communities.
Starlink, with its promise of affordable satellite internet, presents a potential solution. Regulatory requirements mandating 30% black ownership.
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.
Employee 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 parties involved.
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 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 programs.
Employee share ownership plans (ESOPs) have traditionally been seen as compliance and…
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 Government of National Unity presents a significant opportunity to drive policy that encourages more employee share ownership. Employee share ownership has been a successful….
BEE Ownership & Competition Commission: Public Interest Considerations
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, and that is in the process of evaluating or implementing the transaction, should carefully consider both BEE ownership implications and the public interest factors.
ESOP Accounting in South Africa: Best Practices for Multinationals
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 mechanisms to drive companies’ Broad-based Black Economic Empowerment (BEE) strategies and to align…
BEE Ownership for Multinationals – An Introduction
Multinationals operating in South Africa must have a Black Economic Empowerment (BEE) status that enables them to sustainably compete, generate profits, and create value. A company’s BEE status is first and foremost assessed as its BEE contribution level, which is essentially an expression of how well the business has embraced BEE against set targets. These targets are set across various….
ESOP – Achieving BEE Ownership Through Employee Ownership
Employee Share Ownership Plans (ESOPs) involve providing targeted employees with an ownership stake in their employing company. Employee ownership can better align employee and shareholder interests, and from a BEE perspective enables BEE ownership recognition. Companies considering ESOP implementation need to be clear on their objectives.
Why Employee Ownership must be considered as part of your BEE strategy
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. These include improved business performance, better employee relations, socio-economic benefits, and positive BEE outcomes, among others. These are particularly relevant in context of South Africa….
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 other benefits to the parties to the transaction. Multinationals considering implementing ESOPs in this context need to clearly understand the…
Why are Employee Ownership Plans (ESOPs) in South Africa relatively uncommon?
Employee Share Ownership Plans (ESOPs) in South Africa remain underutilised, despite their potential to enhance employee engagement, align business interests, and achieve BEE ownership goals. Shaun Smit of Transcend Capital delves into the complexities, challenges, and benefits of ESOP implementation and offers insights into creating sustainable employee ownership models.
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 that organisations globally use Employee Share Ownership Plans (ESOPs) as a…
BEE Ownership Strategy | Sale of Assets (SOA) to Black Investors
Companies in South Africa can recognise ownership points on their BEE scorecard by selling a property, business, or subsidiary to Black investors – just as they would if they concluded a BEE deal. This is called a Sale of Assets (SOA) transaction. This is called a Statement 102 Transaction.
Our multinational and listed clients have experienced…
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 landmark decision that sparked intense..
DTIC’s Certainty On Broad Based Ownership Schemes And Employee Share Ownership Plans
After a long period of uncertainty, the Minister of Trade, Industry and Competition has on Tuesday 18 May 2021 published a Practice Note on discretionary Collective Enterprises, such as employee share ownership plans (ESOPs) and broad-based ownership schemes (BBOS), which aims to respond to….
Let’s set up a call to discuss how we can help you.