This is no surprise to me! As CEO and Founder of Vestd, the sharetech platform, I’m a huge advocate of the power of sharing. I know that giving people skin in the game gives them a greater sense of commitment to a company and it aligns people more acutely to long-term business goals, leading to greater stability, growth, and success.

Little wonder then, that most of the FTSE100 has a scheme in place. There was a time when sharing was the best kept secret of the ‘corporate elite’ of Britain, but now it’s clear that the message has trickled down to businesses of all sizes and that something of a share scheme revolution is taking place.

And it’s not just a UK thing. Vestd recently joined forces with Bangalore-based Trica Equity, and we’ve noticed the exact same thing on the subcontinent. In fact, Indian employees are now cashing in on what we are terming the “share scheme surge”, with demand for Trica’s equity management solutions increasing by 46% over the past year.

So, a global trend is truly afoot.

The growth of… growth shares

Now there are many flavours of share or option types, and one of the things that we’ve noticed is that there has been a marked appetite for ‘growth shares’.

Not long ago, we reported that adoption of growth shares had grown by 250% over the past five years, and this trend has continued to gain momentum.

So what are growth shares, and why are companies using them?

Growth shares allow people to share in the value they help to create above a certain threshold. That threshold is called the hurdle rate. Only when the company’s share price exceeds that hurdle, are the growth shares worth anything.

This structure also lends itself nicely to a time or condition-based awarding schedule. To put it simply, you can link the shares to specific performance targets. For example, you receive the shares if you stay with the company for three years or you’ll get your cut after you’ve launched the app etc.

It’s easy to see on this surface level why this is so attractive to employers. These shares basically tie future reward to a concrete goal, protecting the business and incentivising the new hire.

This approach ensures that rewards go to individuals based on the value they help create after joining the business. Equity can then be allocated depending on whether those predefined targets are achieved.

What does the science say about what these shares will do for your business?

At Vestd, we've seen firsthand how growth shares can transform a company's trajectory. By synchronising team members' interests with the company's success, growth shares foster a culture of shared ownership and commitment.

This harmony not only boosts morale but also drives performance. In fact, HM Treasury research has found that tax-advantaged employee share plans can more than double company productivity.

Moreover, growth shares are designed to reward employees for the value they help create after joining the company. This means that team members are incentivised to contribute to the company's growth, knowing that their efforts directly impact their own potential rewards. Such structures not only motivate employees but also aid in retention, as individuals are more likely to stay with a company where they see a clear link between their contributions and personal gain.

In essence, the science – and our experience – suggests that growth shares are more than just a financial incentive; they're a strategic tool for fostering a committed, high-performing team aligned with your company's long-term goals.

Small business growth boom

Now you might be wondering about EMI (Enterprise Management Incentives).

EMI is the most popular scheme in the UK by a country mile and you might’ve heard quite a lot about the benefits, so why are so many small businesses choosing growth shares instead?

Well, EMI is brilliant, when it fits. But that’s the catch. EMI comes with a whole list of eligibility criteria and limitations, from company size and structure to the type of work employees do.

Not every startup or growth-stage business ticks all the right boxes.

Growth shares, on the other hand, offer flexibility. They’re not bound by the same rules, which makes them accessible to a wider range of businesses and employees. For many founders, growth shares feel like the more agile, inclusive option. And in the fast-moving world of startups, that agility can make all the difference.

Growth shares are also ideal for rewarding key players not on the payroll - e.g. advisors, consultants, accountants, freelancers, fractionals etc. There are basically no restrictions on who you can give them to.

Final thoughts: fairer shares for the future

Growth shares represent more than just a new tool in the founder’s toolkit - they reflect a shift in mindset. One where success is shared, incentives are coordinated, and people are rewarded for the value they bring from the moment they join.

In a world where talent is mobile and loyalty is earned, giving your team a genuine stake in the journey is one of the most powerful moves you can make!

Whether you’re just starting out or scaling up, it’s worth thinking about how you build trust, foster commitment and fuel growth. And a well-designed growth share scheme might just be the key.

At Vestd, we believe the future of business is more open, more inclusive, and more collaborative. And growth shares are helping to lead the charge.

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