‘Employee ownership is a natural progression for us’: Marketing agency Formative Content transitions to an EOT
The Employee Ownership Association (EOA) is delighted to announce that Formative Content has transitioned to a 100% Employee Owned Trust (EOT) to enable its 70-plus employees to share more in the future direction and success of the business.
Founded by former television news executive Gay Flashman in 2014, the digital marketing and communications agency develops communication strategies and original content for corporate and B2B clients around the globe. Formative’s clients include Microsoft, McKinsey, Tata Consultancy Services and the World Economic Forum.
Formative CEO Gay and managing director Paul Muggeridge have both transferred all shares to the Trust as part of the company’s aim to remain independent, although both remain committed to the company and will stay in their roles.
Through the Trust, employees with six months or more continuous service will indirectly own a stake in 100% of the business. The structure will see the current management team joined by an elected Employee Council representing staff across the company.
Gay said: “We are really proud of what we’ve achieved over the past seven years, growing the business from virtually nothing to a team of nearly 80 people.
“We’ve always aimed to be a people-focused business and our success is down to all of our team members. Employee ownership is therefore a natural progression for us, ensuring that the future of the company remains firmly in the hands of the people who share our values and vision of the future.”
Deb Oxley OBE, Chief Executive of the Employee Ownership Association (EOA), added: “Congratulations to Formative Content on its transition to employee ownership securing the ethos, values and culture of the business, as well as rooting the jobs in the region, for the longer term.
“Businesses that give employees a stake and a say build trust and shared responsibility, therefore uniting leaders and employees behind a common purpose. This leaves the business in a better position to flex and adapt as the economy looks to recover and renew.”
Formative joins a fast-growing network of EOTs in the UK that include Aardman Animations, Richer Sounds and Go Ape. Other agencies that have transitioned to employee ownership include The Nursery, Emperor and Cirkle.