Richer Sounds now in employee ownership. Thoughts?

skayjah

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Julian Richer has transferred 60% of the company to employees, with employees receiving £1,000 for each year of service.

I think this is a great step and something which more companies should emulate. Employees having a real stake in a business can only be good for motivation and morale.

Mods: not sure if this is the correct forum, feel free to move if it isn't!
 
From the outside it seems Richer is quite a good egg.
Yeah, especially with the lack of zero hour contracts in his stores and the fact he's funding an organisation looking into the finances of multinationals. Seems like a good bloke.
Tax free I wonder?
I hope not! I'll give him the benefit of the doubt for now ;)
 
Structuring it this way exempts him from paying tax on cashing out.
 
I think it is a good move for staff and customers.
 
Love this part:

'The company’s nine directors, who Richer said earn six-figure salaries, are not included in the bonus pool: “This is to thank loyal, hardworking colleagues'.

He seemed to have stopped short of saying 'Not those lazy bastards sat on their arses in the boardroom', but I'm clever enough to be able to read between the lines on that quote :laugh:

As David said above, he seems like a good boss, fair play to him :thumbsup:
 
Obi Wan vs. Darth Vader?
 
Wouldn't the tax be far less than he's giving away though?

He's not giving it away, he's being paid for it though in a tax efficient manner:

Employee ownership trusts

  • Shareholders can sell their shares for full market value (an independent valuation will be required)
  • No capital gains, income or inheritance tax liabilities should arise on the disposal of a controlling interest in a company to an EOT (or on the subsequent receipt of the purchase price by the former shareholders
 
I wouldn't want to pay tax directly to this shower of shite government either. Much rather have more for myself and buy stuff with it, paying VAT instead...at least I'd get something in return.
 
Julian Richer funded an organisation to investigate tax avoidance.

Richer Sounds boss launches crusade to expose tax avoiders

A wealthy former Tory party donor is to fund a new independent tax watchdog that will pore over the opaque finances of multinational companies and individuals to expose tax avoidance. Julian Richer, who founded the hi-fi and TV specialist Richer Sounds, is bankrolling the non-profit venture Taxwatch after growing angry at the UK’s increasingly “broken” tax system.

“I’m outraged by the status quo,” said Richer. “We pay our taxes but these people are just laughing at us. You can’t move these days for stories about people and companies trying to find ever more ingenious ways to avoid paying their tax bill, whether it’s tech giants, celebrities or major landowners.”
 
So would he have more money after taxes if he had just sold the business instead of giving sixty percent away?
 
Tax avoidance is something the government can resolve, the individuals using it aren’t doing anything wrong.

Tax evasion however is a different matter. I think by looking at the avoiders he is barking up the wrong tree.

Evasion, avoidance, it's all just semantics.

Basically, they can afford to pay their share of tax and don't want to because they're greedy, that's their motivation.
 
I put a lot into my private pension and get the tax and NI on that.
I have also moved around the country a hell of a lot with work and the money going into my pension will mean I get less handouts from the government.
If I may ask a question - do you put any more than the minimum into your pension?
Also are you planning for retirement? I have put extra in to my pension for a lot of years.
 
I think it's wrong that whenever someone does something good for others, as Richer clearly has done here, there's always someone waiting in the wings to have a dig. He's doing right by his staff, but people still look for the 'but' don't they?...

Reminds of a phrase:

'A pat on the back is a recce for a knife'
 
Tax avoidance is something the government can resolve, the individuals using it aren’t doing anything wrong.

Tax evasion however is a different matter. I think by looking at the avoiders he is barking up the wrong tree.

I quoted your post and replied to it and you gave me a :( (which you're entirely entitled to do, of course), can I ask why?

Do you think I'm wrong? Do you think tax avoiders/evaders/whatever are not motivated by personal greed? If not, what are they motivated by?

I put a lot into my private pension and get the tax and NI on that.
I have also moved around the country a hell of a lot with work and the money going into my pension will mean I get less handouts from the government.
If I may ask a question - do you put any more than the minimum into your pension?
Also are you planning for retirement? I have put extra in to my pension for a lot of years.

Are these questions directed at me or someone else, it's not entirely clear?

For me, I put nothing into my pension as I've opted out and I have no plans for retirement. I don't even bother attempting to control the future as it is a complete unknown, I just live very much in the present.

I don't advocate this to anyone else as it is very much a personal choice, but it suits my outlook.
 
I think it's wrong that whenever someone does something good for others, as Richer clearly has done here, there's always someone waiting in the wings to have a dig. He's doing right by his staff, but people still look for the 'but' don't they?...

Reminds of a phrase:

'A pat on the back is a recce for a knife'

I tend to think that a negative response probably reveals more about the respondent than the subject they're commenting on.

And I am as guilty of this as anybody!
 
I quoted your post and replied to it and you gave me a :( (which you're entirely entitled to do, of course), can I ask why?

Do you think I'm wrong? Do you think tax avoiders/evaders/whatever are not motivated by personal greed? If not, what are they motivated by?



Are these questions directed at me or someone else, it's not entirely clear?

For me, I put nothing into my pension as I've opted out and I have no plans for retirement. I don't even bother attempting to control the future as it is a complete unknown, I just live very much in the present.

I don't advocate this to anyone else as it is very much a personal choice, but it suits my outlook.
And what happens when you are unable to work? Inevitably the welfare state will kick in.
 
I quoted your post and replied to it and you gave me a :( (which you're entirely entitled to do, of course), can I ask why?

Do you think I'm wrong? Do you think tax avoiders/evaders/whatever are not motivated by personal greed? If not, what are they motivated by?



Are these questions directed at me or someone else, it's not entirely clear?

For me, I put nothing into my pension as I've opted out and I have no plans for retirement. I don't even bother attempting to control the future as it is a complete unknown, I just live very much in the present.

I don't advocate this to anyone else as it is very much a personal choice, but it suits my outlook.
Avoidance evasion it is all semantics you said. And no it isn’t, it is very different. One is abiding by the rules and the other isn’t.

I don’t think that avoiders are driven by greed at all. When I’m contributing privately to my pension am I being greedy? When I’m taking tax avoidance advantage by utilising a mechanism like an ISA am I being greedy? I see no wrong or negative in abiding by the rules, understanding the rules and use them. That is not greed.
 

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