Formative Content has announced its transition to an employee ownership trust (EOT).
The digital marketing and communications agency, founded by former television news executive Gay Flashman in 2014, said the move would enable its more than 70 workers to share in the future direction and success of the business.
Formative develops external engagement strategies and original content for corporate and business-to-business clients around the world. Clients include Microsoft, McKinsey, Tata Consultancy Services and the World Economic Forum.
Flashman, now chief executive, and managing director Paul Muggeridge both transferred all their shares to the EOT as part of their aim for the business to maintain independence. Both Flashman and Muggeridge said they remain committed and will stay in their roles.
The EOT will enable employees with six months or more continuous service to indirectly own a stake in the business. The trust's structure will consist of the current management team as well as an elected employee council that will representing staff.
Flashman explained that the organisation is “really proud” of what it has achieved over the past seven years, growing to a team of nearly 80 people.
“We’ve always aimed to be a people-focused business and our success is down to all of our team members. Employee ownership is therefore a natural progression for us, ensuring that the future of the company remains firmly in the hands of the people who share our values and vision of the future,” she said.
Deb Oxley, chief executive of the Employee Ownership Association, offered her congratulations to Formative Content on its transition, saying it secured the ethos, values and culture of the business, as well as rooting the jobs in the region for the future.
“Businesses that give employees a stake and a say build trust and shared responsibility, therefore uniting leaders and employees behind a common purpose," she said. "This leaves the business in a better position to flex and adapt as the economy looks to recover and renew."
Employee Benefits reported earlier this week that Yorkshire-based law firm Ison Harrison had itself moved to an employee ownership model.
