Management participation programmes are widely used in listed companies. This for good reason. Top managers are placed in the position of entrepreneurs in which they are involved in the performance of the company. As a result, the management is able to
action and thinking in operational and strategic leadership. Almost as a side effect, the bond with the company increases.
I Management participation to the advantage of the owners
In the case of owner-managed or family-owned medium-sized enterprises, the circle of shareholders is closed. The admission of new shareholders is often rejected. This is why unlisted medium-sized companies are particularly concerned with the direct
management’s participation in equity. The basic prerequisite for a management shareholding is therefore that the circle of shareholders is not changed as a result. Nevertheless, a balance of interests must be established between owners and management. In the competition for top talent, only those medium-sized companies that respond to their expectations will be able to compete. It is precisely these that have changed over time. Remuneration, of course, plays an important role for top-level staff, but money alone does not mean everything to them. Being able to get involved in business decisions personally and thus assume corporate responsibility essentially determines job satisfaction and thus the acquisition of top employees and their loyalty to the company.