Why Employee Ownership Matters
Increased Employee Engagement & Productivity
Employees who have an ownership stake tend to be more committed to company success.
Better Business Performance
Employee-owned businesses often outperform traditional businesses in growth and stability.
Stronger Local Economies
Keeping businesses in the hands of employees helps retain jobs and wealth within local communities.
Types of Employee-Owned Businesses
"There’s no one-size-fits-all approach to employee ownership—different models work for different businesses. Some give employees full control, while others offer profit-sharing or retirement benefits. What they all have in common is a commitment to shared success, stronger workplaces, and long-term business sustainability. Here’s a look at the most common types of employee-owned businesses and how they work.
Alternative Equity Structures (AES)
- Various forms of sharing in company profits and/or future gains
- Examples include stock option plans, direct share ownership, and synthetic equity
- Worker ownership can be partial
Worker Owned Cooperatives
- 100% employee owned
- Democratic and transparent decision-making
- Workers share the profits
- Criteria-based membership
Employee-owned Trust (EOT)
- Trust-owned business with benefits to current and future employees
- Protects the mission and operations of the company
- Workers are represented in governance and share profits
Employee Stock Ownership Plans (ESOP)
- An employee retirement plan
- Stocks are put into a trust to benefit workers when they retire
- Best for large businesses
- Worker ownership can be partial
Benefits of Employee Ownership
Success Stories
Read the countless stories of businesses benefiting from an employee owned company structure.
Getting Started with Employee Ownership
Transitioning to employee ownership is a substantial decision that demands careful planning and thoughtful consideration. It’s crucial to evaluate your organization’s readiness, address financial concerns, and select the most appropriate ownership model. The RMEOC is here to help when you are ready to make that journey.
For existing businesses
Give your employees the power of ownership
Do you own a business and are curious what it would look like to give your employees a piece of the pie? See how you can give to your employees through our Employee Ownership Conversion Program.
For NEW businesses
Create a cooperative
Have a business idea but need help making it employee owned? Maybe our Employee Ownership Incubation Program is right for you.
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