Monzo Millionaires: Why employee share schemes are a win-win for business

Monzo recently created 15 new Monzo millionaires, serving as a case study in how employee share schemes can provide significant financial rewards, drive loyalty, performance and long-term company value. With two major investors set to expand their stakes by buying shares from employees who have been awarded stock options, Monzo’s approach highlights the transformative potential of offering employees a financial stake in the business.

Employee share schemes are now widely offered at all levels, with Enterprise Management Incentives (EMI) being particularly popular among early-stage businesses. Companies are increasingly recognising the strategic advantage of these incentives. In today’s competitive talent market, share schemes play a vital role in attracting and retaining talent over the long term. 'Employee share schemes can transform a workforce’ says Samantha Lenox, Partner and Head of our Employee Share Schemes team.

By offering employees a direct stake in the business, companies align the interests of shareholders and employees and foster a sense of ownership and commitment. This not only reduces turnover and keeps employees motivated, but also makes the business more attractive to investors, who see a loyal, engaged team working toward shared goals.

For companies eyeing growth, Monzo’s example highlights how share schemes can align employee interests with business success, elevate morale, and create appeal for investors looking for sustainable, committed workforces.

Thorough planning and expert legal guidance are essential to ensure your employee share option plan aligns with the company’s commercial goals, adapts to future changes in the company and workforce, leverages available tax efficiencies and reliefs, and offers strong protection for the business and its shareholders. We can help you develop a tailored employee share scheme that creates lasting value for both employees and your business.