Becoming Employee-Owned: Options For Business Owners Interested in Engaging Employees Through Ownership

ORGANIZATION:
Democracy at Work Institute

Year: 2014

Becoming Employee-Owned is a guide for business owners interested in employee ownership. It provides an overview of the three primary transition approaches for employee ownership: worker cooperatives, ESOPs, and management buy-outs. Regardless of what stage the business is in–from expansion to succession planning– this resource can help business owners understand their options for becoming an employee-owned company.

Regardless of what stage your business is in — from start-up to succession planning — giving employees an ownership stake can have significant benefits for owners, employees, the company, and the community. Decades of research have shown that employee ownership can drive company productivity while rewarding the people who are contributing to the company’s success. It also provides a flexible tool for ownership transition that can help preserve the company’s mission and values.

There are a number of different ways to share ownership with employees. Which option is right for your business depends on the goals of the business owners, the type of the business, and the company’s mission and values. Depending on which structure is used for the transition, there are many potential tax incentives for the selling owner(s) and the business. This resource provides an overview of the three primary business trasition approaches:

1. WORKER COOPERATIVES
2. EMPLOYEE STOCK OWNERSHIP PLANS (ESOPS)
3. MANAGEMENT BUY-OUTS

Download Becoming Employee-Owned