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Staff share investment spoils

Antony Savvas


Employees at enterprise software company Vignette are to enjoy the spoils of their bosses' stock investments, as part of the company's skills retention programme, writes Antony Savvas.

Recognising the increasing staffing problems due to the ongoing skills crisis, Vignette has promised staff half of any profits realised from investments in other companies, as part of Vignette's $50m (£33m) venture capital fund. The company claims that no other firm offers a percentage of its private investments to staff.

Vignette's 1,000 employees worldwide already enjoy bonuses, stock options in the company and other perks such as free yoga classes and subsidised on-site massages.

A Vignette spokeswoman says, "There are a lot of companies in the same boat as Vignette, trying to keep hold of their existing pool of skills, and this aim is even more important for the company as it seeks continued rapid expansion. It has doubled in size in the last six months."

With the scheme, every employee under the level of senior vice president takes part. The senior management team makes the investment decisions. When any investment is liquidated, 50% of the gains are transferred to the staff, who then re-invest the cash over a four-year period in either Vignette shares or other mutual funds.

After this period, the profits from these ring-fenced investments can be reinvested or taken out by the staff.

Vignette estimates that the free investments could lead to staff gaining an extra 25% on top of their salaries. The company is keen to point out that any total losses made in the investments are not picked up by staff.


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