About Employee Ownership
Employee ownership means employees share in the value of the business and may also have a voice in shaping its future.
Companies may be 100% employee-owned or partially employee-owned alongside founders or outside investors. Great EO combines broad-based ownership with practical employee governance—so employees have both a stake and a say.
Ownership can be structured in different ways:
- ESOPs/share plans: employees directly owning shares
- EOT: shares are held on employees’ behalf by an Employee Ownership Trust
- Co-op: members own and govern the enterprise democratically through a worker co-operative.
The Case for Employee Ownership
$2 Trillion At Risk: Canada’s Ownership Transition Challenge
The aging Canadian business owner demographic is creating the largest ownership transitions in our country’s history.
A Crisis in the Making:
Over the next decade, more than 75% of small business owners plan to exit, putting $2 trillion in business assets into transition.
Only about 1 in 10 business owners have a formal succession plan in place, leaving many companies unprepared for leadership change.
When businesses go to market, as many as 70% fail to sell, forcing owners into discounted sales, closures, or unfavourable deals.
The result?
- Owners lose wealth, employees lose jobs, communities are weakened and lose local champions.
- Vital economic anchors disappear.
- Canadian companies are bought up by outsiders, and we risk losing both local wealth and economic resilience.
Benefits of Employee Ownership
For Owners
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Control over your exit.
Choose when, how much, and to whom you sell—phase a minority-to-majority transfer or complete a full exit on your timeline.
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Legacy preserved & employees rewarded.
Keep the business independent and locally rooted while sharing upside with the people who built it.
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Fair value (with tax advantages).
Sell at market value; qualifying EOT sales in Canada may receive up to $10M in capital-gains tax exemption (confirm eligibility with your advisor). Avoid transaction commission expenses in a third party sale.
For Employees
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Financial opportunity.
Employee ownership creates a clear pathway to build wealth—from profit sharing or equity growth to retirement-ready savings.
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Higher job satisfaction.
When employees have a stake, engagement rises and retention improves—people stay to help grow what they own.
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Greater stability.
Local, employee-anchored ownership supports steady jobs, career development, and long-term security for workers and their families.
For Businesses
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Stronger performance.
Employee owned businesses grow faster and are more productive than non-EO organizations.
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Resilience in shocks.
During downturns, EO companies are 3–4× more likely to retain staff (managers and non-managers) and less likely to cut hours or pay.
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Retention & alignment.
Shared upside links everyday effort to long-term results, reducing turnover (by 50% on average!) and strengthening engagement and problem-solving.
For Communities
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Jobs stay local.
Employee-owned firms keep wealth in the community; ownership—and decision-making—remain locally rooted.
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Broader prosperity.
Employee ownership increases wages, wealth, and tenure—channeling more household income into local economies.
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Equity outcomes.
Employee ownership participation narrows racial and gender wealth gaps, supporting inclusive growth.