What is employee ownership?
Employee ownership gives workers a real stake in the businesses they help build. When employees share in profits, decision-making, and success, businesses thrive — creating higher wages, lower turnover, and stronger communities. RMEOC supports Colorado’s transition to this model by providing education, policy advocacy, and hands-on support for cooperatives, ESOPs, and other ownership structures that make our economy more just and sustainable.
Employee-owned companies across the U.S.
Why It Matters
A Proven Path to Shared Prosperity
Employee ownership isn't just a business structure — it's a movement toward a more equitable economy. When workers have a stake in the companies where they work, everyone benefits: employees build wealth, companies perform better, and communities thrive.
Models of Ownership
How Employee Ownership Works
There are several proven models for structuring employee ownership. Each has its own
advantages depending on your company's size, goals, and culture.
Employee Stock Ownership Plans (ESOPs)
The most common form of employee ownership in the U.S., ESOPs are tax-qualified retirement plans that invest primarily in the stock of the sponsoring employer.
- Company contributions are tax-deductible
- Employees pay no tax until they receive distributions
- Selling shareholders can defer capital gains taxes
- Companies can be 100% owned by the ESOP trust
~6,500
ESOPs in the U.S.
Worker Cooperatives
Democratically governed businesses where worker-members have an equal vote in company decisions, regardless of position or seniority.
- One member, one vote governance
- Profits distributed to worker-members as patronage
- Democratic workplace culture
- Strong local community ties
Employee Ownership Trusts (EOTs)
A newer model gaining popularity where a perpetual trust holds a controlling interest in the company on behalf of all employees.
- Trust holds shares on behalf of employees
- Preserves company mission long-term
- Simpler administration than ESOPs
- Growing in popularity since 2020
Growing
Rapid adoption in CO
Impact & Benefits
The Case for Employee Ownership
Decades of research show that employee ownership creates measurable benefits for
workers, businesses, and communities alike.
2.5x
Higher Retirement Savings
Employee-owners have 2.5x more in retirement accounts compared to employees at non-EO companies.
4%+
Better Company Performance
Employee-owned firms show 4% higher productivity and 14% higher profitability on average.
3-4x
Greater Job Stability
Employee-owned companies are 3–4x less likely to lay off workers during economic downturns.
92%
Community Impact
These businesses stay rooted locally, with less chance of outsourcing or relocation.
33%
Reduced Inequality
Employee ownership narrows pay gaps and builds wealth for workers across all demographics.
40%+
Increased Engagement
Employee-owners report higher job satisfaction, lower turnover, and stronger motivation.
By The Numbers
Employee Ownership at a Glance
14M+
Employee-owners in the U.S.
$2.1T
Total assets held by ESOPs
30%
Higher median household income
92%
Remain in business after 5 years
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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