Employee Ownership Resources

Not sure where to begin?

Employee ownership can feel overwhelming at first, but you're in the right place. Whether you're exploring ESOPs (Employee Stock Ownership Plans) or other paths to employee ownership, this page provides essential information, guides, and resources to get you started on your journey. With the right tools and knowledge, you can start making informed decisions and move towards unlocking the benefits for your business and employees. Take your time, explore the options, and turn those daunting stacks of paperwork into opportunities for success.

Reach out to the IA-CEO for personalized guidance and additional resources. We're here to help you every step of the way.

Getting Started

An introduction to Employee Ownership.

Employee Ownership Basics

NCEO

Access thousands of resources and a wide array of benefits that help you navigate complex decisions and avoid costly mistakes.

National Center for Employee Ownership (NCEO)

EOX Network

EOX works to expand employee ownership across the US by creating and supporting a network of non-profit state centers for employee ownership.

EOX Network

The National Center for Employee Ownership (NCEO) reports that the most common structure for broad-based employee ownership in the U.S. is the ESOP.

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ESOPs paid out over $175 BILLION DOLLARS to participants in 2021.

Credit: National Center for Employee Ownership (NCEO)

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Total contributions to ESOP accounts were over $101 billion in 2021, an average of $6,890 in contributions per participant.

Credit: National Center for Employee Ownership (NCEO)

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Majority ESOP-owned companies were 3 to 4 times more likely to retain staff compared to other businesses during the pandemic.

Credit: National Center for Employee Ownership (NCEO)

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6,322 companies have an employee stock ownership plan (ESOP) - Of those, 5,866 are privately held companies and 456 are publicly traded companies

Credit: National Center for Employee Ownership (NCEO)

Employee Ownership - BY THE NUMBERS

ESOPs cover 14.7 million participants, of whom over 10.7 million are active participants—those currently employed and covered by an ESOP. - NCEO / National Center for Employee Ownership

Industries of Privately Held ESOP Companies

A Wave is About to Hit

A ‘Silver Tsunami’ is Hitting Rural America as Small Business Owners Retire Without Replacements

Over half of the businesses in the U.S. are owned by Baby Boomers and in a recent study, 75% of business owners would like to exit their businesses within the next 10 years.

Read the full article below to see how this has already started to impact and will continue to reshape communities across the Midwest and Great Plains in the coming years.

A ‘Silver Tsunami’ is Hitting Rural America as Small Business Owners Retire Wit…

Top 10 ESOP Advantages

According to NCEO / National Center for Employee Ownership

Advantage #1: Owners Selling to a C corporation ESOP can indefinitely defer taxation, unlike non-ESOP sales
Advantage #2: Owners can sell any amount to an ESOP; most non-ESOP buyers only want to buy 100% of the company
Advantage #3: If there are multiple owners, an ESOP can buy from only one; non-ESOP buyers usually want everyone to sell so they are the sole owner
Advantage #4: Owners can sell to the ESOP at their own pace over a period of years and retain a role at the company
Advantage #5: Only an ESOP can use pretax dollars to buy out owners; other buyers would use after-tax dollars
Advantage #6: An S corporation ESOP shields the company from taxes (the ESOP is tax-exempt, with no taxes to fund)
Advantage #7: The company retains its identity after the sale, whereas a non-ESOP sale may destroy the owner's legacy
Advantage #8: The employees who helped build the company can now be rewarded through ESOP ownership
Advantage #9: ESOPs can improve corporate performance when combined with high-involvement work cultures
Advantage #10: ESOPs add to employee retirement security, from preserving jobs to enhancing retirement assets

Not sure where to begin?

ESOPs paid out over $175 BILLION DOLLARS to participants in 2021.

Total contributions to ESOP accounts were over $101 billion in 2021, an average of $6,890 in contributions per participant.

Majority ESOP-owned companies were 3 to 4 times more likely to retain staff compared to other businesses during the pandemic.

6,322 companies have an employee stock ownership plan (ESOP) - Of those, 5,866 are privately held companies and 456 are publicly traded companies

Employee Ownership - BY THE NUMBERS

Industries of Privately Held ESOP Companies

Top 10 ESOP Advantages

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