London-based demolition contractor McGee has become an employee-owned company after 61 years.
The company has transferred 100% of the shares in McGee Group to an Employee Ownership Trust (EOT).
The role of the trust is to hold the shares on behalf of the group’s employees who are the sole beneficiaries of the trust. Every employee of McGee Group becomes a beneficiary after 12 months of continuous employment with a group business.
Every employee will also participate in a new EOT bonus scheme, which will be linked to the profit of McGee Group (Holdings). Any bonuses paid in line with the EOT bonus scheme will be free of income tax (national insurance is payable) up to a statutory limit which is currently £3,600 per year. Any EOT bonus above £3,600 will be taxed as normal.
The structure of the business (other than the shareholding) remains unchanged and there will be no changes in the way it operates day to day.
Chairman, Brian McGee, said: “For us, it’s a move designed to secure the future of the business, continue the legacy that our father started in 1959 and reward the people who have made the business the success it is today – its employees”. The McGee family will continue to support the business with Tom McGee – the third generation of the McGee family involved – to join the company board.
Seb Fossey, managing director, said: “The decision by the McGee brothers to transition ownership of the business to the group’s employees via an EOT underscores the respect for the contribution our people have made to the McGee business.
“In doing this, the McGee brothers have created a clear platform for genuine alignment between all of our new ‘employee owners’ that will further reinforce our culture of delivering upon our commitments to clients, and stands us in good stead as we drive to achieve our strategic goals. Undoubtedly, at this time of crisis in the industry, our transition to Employee Ownership will serve as fuel for our business and will help enable us to emerge stronger.”
