Profit‐sharing and employee share ownership schemes have attracted great interest in the 1980s. The findings of the first phase of a Department of Employment study which involved a large‐scale investigation of British companies is reported. Details on the operation, coverage and type of scheme which had been adopted were gathered for 822 firms and extended interviews were conducted with a further 303 firms. A highly varied rate of adoption of schemes in different industrial sectors and with diverse economic and industrial relations experiences is revealed. If further advances in profit‐sharing and share ownership are considered to be worthwhile, policy initiatives should be centred on the medium and smaller companies in Britain. Considerable efforts outside the financial sector are necessary to effect any marked acceleration of profit‐sharing and share ownership. If future developments are envisaged senior management of the main types of enterprise are a vital target group. Foreign‐based companies should also be encouraged to embark on profit‐sharing or share ownership. If the advancement of more specific Inland Revenue APS schemes is to become general policy, information and advice for companies outside the financial sector is needed.