- Original Poster
- #1
Hello, I need some help and opinion on a situation I find myself in.
I’ve been employed by a firm for 20 years. The business owner recently died. There are two senior staff, myself and a director. We are not shareholders.
The owner used to generate income for the firm but after they became ill ten years ago, I stepped in and took on his department. Did very well with it to a point he decided to semi retire and live off the income the business produces.
Anyway, he’s now dead. The heir is a boy in his mid twenties. Think rich kid (very rich now) who has never done a days work and floats around over Europe. He has no interest in the business and doesn’t want to work in it. Instead he wants the remaining two senior staff to carry on and run it.
My assistance this year in helping run the firm has cost me £70k in lost personal income but nonetheless.
To add, because the boy isn’t experienced or qualified, the regulator will not allow him to be a director so I’ve been asked.
Six months ago the two of us made a proposal. The boy gives us 15% shares each in the business and we run it for him. We’ve grown the business very well (9% a year for the last 10 years) so we know the firm, industry and what we are doing inside out.
In the proposal I highlighted my value. My justification for asking for £500k in shares is based on the fact that
1) I’ll give the firm another 20 years of my working life. I’ve done 20 already and only had 3 sick days
2) of the £1.4m turnover, I generate 900-1m of this income so if I left, there may be a devaluation. Clients I’ve dealt with for 20 years with follow in due course
3) if I leave, the director will leave (he can’t face the fall out of me going. Two other staff will immediately follow so it leaves the boy 3 months to find two senior staff and support staff. Regulator may suspend the firm anyway as most replacement staff need 3 months notice and good staff is impossible to find so there may be a period where there are no senior staff to run the business and deal with clients
4) my income target is £650k and I smash this. The dividend for the owner will come from the excess income I bring in as I just stick to my target, the firm only breaks even. Therefore it’s in the interest of the new owner to retain me
5) the income level and work I undertake is probably in the top 10% in the industry.
6) I’ve had offers of £900k to go to another firm and bring my clients after a year.
I have to say, we made this proposal back in August and we are now in March.
Clearly the kid has been burying his head in the sand and we have intimated we will leave. This prompted a meeting earlier this week which offered us 15% of shares in a new class (dividend only) which means the value placed on me is £0.
Very sad, but I fear naievety is going to cost the kid this whole business because if I go, the whole thing will capitulate.
After rejecting the offer made via his mum, they have hurriedly come back to arrange another meeting. I’m planning on holding my ground and if they come back with another insulting offer, bearing in mind my MH is suffering due to the uncertainty and extra workload, I will just resign.
The opinion I’m seeking is, as business minded people, is what I’m asking for unacceptable?
I’ve been employed by a firm for 20 years. The business owner recently died. There are two senior staff, myself and a director. We are not shareholders.
The owner used to generate income for the firm but after they became ill ten years ago, I stepped in and took on his department. Did very well with it to a point he decided to semi retire and live off the income the business produces.
Anyway, he’s now dead. The heir is a boy in his mid twenties. Think rich kid (very rich now) who has never done a days work and floats around over Europe. He has no interest in the business and doesn’t want to work in it. Instead he wants the remaining two senior staff to carry on and run it.
My assistance this year in helping run the firm has cost me £70k in lost personal income but nonetheless.
To add, because the boy isn’t experienced or qualified, the regulator will not allow him to be a director so I’ve been asked.
Six months ago the two of us made a proposal. The boy gives us 15% shares each in the business and we run it for him. We’ve grown the business very well (9% a year for the last 10 years) so we know the firm, industry and what we are doing inside out.
In the proposal I highlighted my value. My justification for asking for £500k in shares is based on the fact that
1) I’ll give the firm another 20 years of my working life. I’ve done 20 already and only had 3 sick days
2) of the £1.4m turnover, I generate 900-1m of this income so if I left, there may be a devaluation. Clients I’ve dealt with for 20 years with follow in due course
3) if I leave, the director will leave (he can’t face the fall out of me going. Two other staff will immediately follow so it leaves the boy 3 months to find two senior staff and support staff. Regulator may suspend the firm anyway as most replacement staff need 3 months notice and good staff is impossible to find so there may be a period where there are no senior staff to run the business and deal with clients
4) my income target is £650k and I smash this. The dividend for the owner will come from the excess income I bring in as I just stick to my target, the firm only breaks even. Therefore it’s in the interest of the new owner to retain me
5) the income level and work I undertake is probably in the top 10% in the industry.
6) I’ve had offers of £900k to go to another firm and bring my clients after a year.
I have to say, we made this proposal back in August and we are now in March.
Clearly the kid has been burying his head in the sand and we have intimated we will leave. This prompted a meeting earlier this week which offered us 15% of shares in a new class (dividend only) which means the value placed on me is £0.
Very sad, but I fear naievety is going to cost the kid this whole business because if I go, the whole thing will capitulate.
After rejecting the offer made via his mum, they have hurriedly come back to arrange another meeting. I’m planning on holding my ground and if they come back with another insulting offer, bearing in mind my MH is suffering due to the uncertainty and extra workload, I will just resign.
The opinion I’m seeking is, as business minded people, is what I’m asking for unacceptable?
