Employee Ownership Basics
Introduction to Employee Ownership
What is an ESOP (Employee Stock Ownership Plans)
Employee Ownership Expansion Network: Is Selling to an ESOP Complex and Expensive?
What is a Worker Cooperative?
Employee Ownership Expansion Network: NCEOC - Electric Violin Company: Worker Coop Seller Story
Employee Ownership Transition
ShopBot Tools: Becoming an Employee Ownership Trust (EOT) from a small manufacture perspective
What is Employee Ownership?
Employee ownership is a shared equity model where employees have an ownership stake in the company. These employees may or may not be involved in key management decisions. However, they participate in the financial performance of the company.
A closer look at the model...
Worker Cooperatives and Employee Stock Ownership Plans (ESOP) are the primary employee-owned business structures that build employee equity. However, other shared ownership types exist such as Stock Options/Grants, Phantom Stock, and Profit Sharing. All the options available make this model adaptable to fit the unique needs and goals of each business.
What are the advantages of employee ownership?
Employee ownership is a tool that assists with business growth and success regardless of the company size. It works because the employees directly correlate their vested interest to the company's financial success.
Why it matters.
- Employee ownership fosters economic resiliency with higher productivity, growth, and improved longevity for the business.
- Workers realize better pay, benefits, increased wealth, and job satisfaction.
- Positive impacts to communities with anchored businesses, increased local spending, enhanced civic engagement, stable jobs, and community wealth building.
- Owners ready to transition have a feasible buyer, value goals reached, and a legacy.
Economic opportunities are created for working families, rural areas, and underserved populations. This is a step toward reducing the financial disparity frequently felt in these situations.
