Giving or offering company shares to employees makes good business sense because when staff become stakeholders, they treat the business as more than a source of employment.
Although there are rules around employee-held shares to prevent insider trading, making company shares available enables employers to invite employees to take a greater interest in the company. It is also a good opportunity to offer financial education to those staff who are new to the sharemarket.
Using company shares as part of a bonus makes a good reward and doubles as a financial incentive for staff to keep up the good work.
