What is employee ownership?

Employee ownership is a business model where employees have a stake in the company they work for, often through stock ownership or cooperative structures. This model ensures that workers share in the financial success of the business while having a voice in decision-making.

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

Benefits for the Company

8.5% Higher profit margins of EO companies
5% faster annual growth for sales and employment
Higher success rate for co-ops than traditional firms
90% of worker cooperatives stay in business after 5 yrs compared to 20% of conventional firms
Tax benefits

Benefits for Employees

92% of employee owners have a higher median household wealth
33% higher median income from overall wages at all wage levels
Greater access to financial benefits
Better working conditions
Reduced risks of job loss

Benefits for the Selling Owners

Creating a succession plan
Preserving the legacy of the company
Tax benefits
Rewarding and retaining employees
Creating a more resilient company

Benefits for the Economy

Worker co-ops keep wealth in the local economy
Healing the wealth gap
Fighting inequality
Boosting employment
Build wealth and higher standard of living
Benefits for disadvantaged communities

Success Stories

Read the countless stories of businesses benefiting from an employee owned company structure.

Fancy Tiger Crafts: Local Denver Craft Shop Becomes Worker-Owned

Employee Ownership Glory Story: Empowered Energy Systems

Trident Booksellers & Café in Boulder, CO: Bootstrapping Employee Ownership

See all

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.

Learn more

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.