What Is an Employee Ownership Trust? (white paper)
Project Equity
Paper · 30-45 min read · For: Owners / executives, Trainers / facilitators
A plain explainer of the employee ownership trust, a newer model in the US where a trust owns the company for the benefit of its workers. Useful for owners who find ESOPs too heavy and co-ops too unfamiliar, and for advisors who need to explain the option.
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Problems it helps with
- ESOPs sound too expensive and complicated for a company our size
- I want the business to stay independent after I sell, not get flipped
- Our employees don't want to buy individual shares but should still share in profits
- Nobody I talk to has heard of an EOT
What it covers
- What an employee ownership trust is and who controls it
- How an EOT differs from an ESOP and a worker co-op
- How profits reach employees without them buying shares
- How the trust protects the company's purpose over time
Topics: Community and collective governance · Ownership models