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In focus
- Endowus flips the script on predictable ESOPs
- IPOs are back – at least in India and China
- ‘AI psychosis’ cases on the rise, Microsoft exec warns
Hello reader,
When it comes to money, I’m pretty risk-averse. So it may sound like a contradiction to say I also enjoy the occasional bet on sports.
One thing that helps me balance my love of a flutter with my fear of losing money is the cash-out option on most betting sites. Instead of waiting until the final whistle, you can lock in a smaller but guaranteed return earlier, swapping potential winnings for peace of mind.
Flexibility like that is important to many of us in an ever-changing world, whether it’s in how we invest, work, or even bet. Perhaps that’s why the employee ownership model of Endowus, a Singapore-based wealthtech firm, resonated with me.
Today’s Big Story is a Q&A with co-founder Samuel Rhee, who discusses Endowus’ take on the employee stock ownership plan (ESOP). Instead of just running a traditional program that locks staff into holding options until an exit, the company also allows employees to directly buy Endowus shares and cash them out along the way.
Rhee says the approach has all sorts of benefits for staff and the firm, from low turnover to stronger buy-in.
It sounds good to me, though I wonder how companies outside of wealthtech could replicate it. Read the story, and you be the judge.
Peter Cowan, engagement editor
The Big Story
Endowus co-founder shares its twist on lackluster ESOPs
Image credit: Timmy Loen
Who better to fund a company than the very people working for it? That’s part of the thinking behind Endowus’ unusual approach to employee ownership.
Setting the program up, however, wasn’t all smooth sailing. Not only did the wealthtech firm have to convince staff they should take more ownership but it also had to explain to VCs why holding secondary sales to provide liquidity was a good idea.
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