Viability of a BBBEE employee share trusts : a case study of an engineering consulting frm

The Broad Based Black Economic Empowerment (BBBEE) policy was created as part of the South African government's drive to correct the inequalities created by the previous apartheid government. This policy rewards companies for empowering previously disadvantaged individuals (PDI's). This empowerment impacts on the ownership of companies with some companies opting to award shares that are held in a trust for employee owners. One such company is the Red Hat Company of South Africa (RHCSA) who created an employee share trust, the Red Hat Employee Share Trust (RHEST). RHEST owns 30% of the company shares with all PDI employees within the company as beneficiaries of the trust. In any year where ordinary company dividends are declared, 30% of all such dividends are paid into the trust and distributed using a scoring system. Since its inception there have been various problems and issues within the RHEST. Beneficiaries indicated that they were unhappy with many of the structures and policies in place. The question this research study seeks to answer is: What interventions can be introduced into the RHEST to make the system more feasible for the stakeholders?

Grantor dc:publisher.institution

Department of Mechanical Engineering

Year dc:date.issued

2016

Author dc:creator

• Ramplin, Richard

Advisor dc:contributor.advisor

• Shaw, Corrinne

Language dc:language.iso

eng

Handle dc:identifier.uri

http://hdl.handle.net/11427/20421

OAI identifier oai:identifier

oai:open.uct.ac.za:11427/20421