money money money 901b case study: an employee share scheme deep dive
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Jan 7, 2026 Explore the fascinating world of employee share schemes through a real-life case study. Discover why companies offer these plans to retain talent and boost cash flow. Glen dives into the intricacies of share classes, potential returns, and the risks employees like Melissa might face. He discusses the importance of understanding ownership structures and the implications of good versus bad leaver rules. Ultimately, listeners hear compelling reasons both to accept and decline such offers, making it an insightful listen for anyone considering investing in their employer.
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Real Case Study Setup
- Melissa is a 38-year-old senior architect earning about $120,000, renting with a spouse and three kids after moving from the UK.
- Her firm is 35 years old, has three directors, ~40 employees, and an estimated value of $4–8M based on assumptions.
Services Firms Are Cash Cow Plays
- Professional service firms value cash flow and people rather than product-driven capital growth.
- Employee schemes in these firms are often succession and retention tools, not growth bets.
Confirm Offer Mechanics First
- Check the share price, minimum buy-in and whether financing is available before committing.
- Remember offers may repeat rarely, so decline now and you might wait a year or more for another chance.