The company must throw off a ‘bloated management culture’ to thrive
In reference to the story Sweett shareholders reject chairman coup (9 May, building.co.uk) - Sweett Group is an AIM quoted company where today an estimated 65%-70% of shares are held by current and former employees.
It ceased to be a partnership 20 years ago and, led by Mr Ives, operated as an all-employee owned company until floating in October 2007. The float, again led by Mr Ives, raised £8.5m which, together with quoted stock, helped fund expansion in the UK and Asia Pacific regions.
Mr Henderson, a former FTSE100 chief executive was always cynical about the company’s employee share ownership (ESO) plans and this attitude was shared by Mr Woollacott (senior independent NED). Between them, they have created a
FTSE100-style governance overhead that adds little value to the company’s service offer.
Sweett is a good company but needs to throw off the stifling burden of a bloated management culture that requires senior operational management to spend their lives populating databases and sitting in strategy meetings, rather than earning their bread as consultants. Again, let’s see how this year’s robust trading statement is borne out by the audited accounts.
Michael Kemsley, via www.building.co.uk