Employee Ownership Blog

Corey Rosen

Six Percent of UK Business Transfers Are Now to Employee Ownership Trusts

In 2014, the United Kingdom passed a law providing a tax exemption for business owners selling to an employee ownership trust (EOT). An EOT is somewhat similar to a U.S. ESOP, but unlike an ESOP, with an EOT the employees do not have individual share accounts and do not have any claim on equity when they leave the company. Instead, the trust is meant to own the company in perpetuity on behalf of the employees, with the employees getting a dividend or profit share each year. New data confirm just how successful this tax incentive has been in encouraging transfers to EOTs in the UK. According to the European Federation of Employed Shareholders, 1,756 UK companies have been transferred to their 124,000 employees via EOTs as of July 2024. About 6% of UK business transfers so far in 2024 have been through EOTs, as the graph below shows.

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Loren Rodgers

Three Cheers for ERISA and Good Governance

One theme of most speakers at our conferences is that ownership culture makes employee-owned companies outperform their competitors. People say that because it’s true and supported by data from many independent researchers. The NCEO is proud to have contributed to that finding.

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Corey Rosen

New Report Identifies 53 Funds Focused on Investing in Employee-Owned Companies

A new report by Curt Lyon and Julie Menter of Transform Finance, Employee Ownership: Overview for Mission-Oriented Investors, identifies 53 funds in the U.S. and Canada that invest partly or entirely in employee-owned companies. Twenty-two of these funds focus only on employee ownership and target raising $1.6 billion to invest. The other funds, which target raising $3.8 billion, invest only some of their assets in employee ownership companies. Five funds focus just on ESOPs, while the others focus on non-ESOP equity sharing.

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Ramona Rodriguez-Brooks

Fall Forum Keynote Sneak Peek: Three Leadership Strategies for Employee-Owned Businesses

This September in Indianapolis, I’ll have the honor of joining Jen Briggs on the Fall Forum main stage for our keynote conversation, “Brewing Potential: Leadership Strategies for Employee-Owned Businesses.” Jen is an insightful and experienced leader, and we will present a candid “beer with the boss”-style keynote focused on building effective leadership that prioritizes high-performance culture. As we start our engines and prepare to #racetoIndy, I’d like to share a few of the landmark themes Jen and I plan to explore in the keynote.

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