Physical music product specialist Key Production has set up an employee ownership trust. Ownership of the business will now be transferred from founder and CEO Karen Emanuel to the trust on behalf of its staff.
Emanuel remains as CEO of the company, as well as being a director of both Key Production and the newly formed Key Production Employee Owned Trust. She is joined on the trust's board by Lisa Edwards, who has been with Key Production for 28 years, and lawyer Rebecca Mills.
Employee ownership trusts are part of a UK government initiative aimed to promote employee ownership of businesses. PWC explains that "EOTs do not involve direct share ownership by employees, rather a controlling interest in a company is transferred to an all-employee trust which is then held for the benefit of employees".
Commenting on the change, Emanuel says, “After just over 33 ⅓ years of being the sole director and owner at Key Production, it’s time for me to secure the next 33 ⅓ years. I’m truly excited to do this by setting up an employee ownership trust, to empower the people that have helped me build the company and amazing culture that is Key Production, namely the staff. I will be staying on as CEO to transition us into this next stage of growth and development".
Music distributor and label services company Kudos Records made a similar move last year, with ownership of that business also being transferred to an employee ownership trust.