Employee ownership is the foundation of an economy in which businesses, workers, and communities rise and thrive together.
Whether you're just discovering employee ownership or you're ready to transition your business, we provide the guidance and resources you need to make informed decisions.
Employee ownership is the foundation of an economy in which businesses, workers, and communities rise and thrive together.
Whether you're just discovering employee ownership or you're ready to transition your business, we provide the guidance and resources you need to make informed decisions.
Employee ownership is the foundation of economies in which businesses, workers, and communities thrive together.
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Employee ownership isn’t just good for business—it’s the foundation of an inclusive economy where workers, owners, and communities rise and thrive together.
Whether it’s your first time discovering employee ownership or your ready to transition your business, we provide the guidance and resources you need to make informed decisions.
Employee Ownership Models
EO can take many forms, but these are the three most common
Employee Stock
Ownership Plans (ESOPs)
Employees gain company shares through their retirement benefit plan, allowing workers to build wealth as the business grows.
Worker-Owned
Cooperatives (Coops)
Businesses are owned and managed by workers. Worker cooperatives operate on democratic principles, which means that each worker-member has an equal say in governance decision-making and shares in the business’s success.
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Employee Ownership
Trusts (EOTs)
The company creates and transfers ownership shares to a trust. The trust is responsible for distributing benefits to employees, often taking the form of profit sharing and healthcare.
Employee Stock
Ownership Plans (ESOPs)
Employees gain company shares through their retirement benefit plan, allowing workers to build wealth as the business grows.
Worker-Owned
Cooperatives (Coops)
Businesses are owned and managed by workers. Worker cooperatives operate on democratic principles, which means that each worker-member has an equal say in governance decision-making and shares in the business’s success.
Employee Ownership
Trusts (EOTs)
Businesses are owned and managed by workers. Worker cooperatives operate on democratic principles, which means that each worker-member has an equal say in governance decision-making and shares in the business’s success.
Washington’s new law,
SB 5096, is expanding
employee ownership.
In 2023, Washington took a bold step toward expanding employee ownership with the unanimous passage of SB 5096, establishing a dedicated state program and Commission for employee ownership. As these entities take shape, the Center will adapt its priorities and activities as necessary to foster strong collaboration and ensure clear roles between the state program and the nonprofit Center. Together, this public-private partnership combines state resources with private sector expertise to create lasting stability for businesses and communities across Washington.
How Employee Ownership Sustains Our Communities
Employee Ownership is a Solution to Small Business Closures
Half of U.S. businesses with employees are owned by baby boomers who are set to retire soon. Known as the Silver Tsunami, this crisis affects the vibrancy and resiliency of our communities.
Download a Free Business Succession Planning Manual
Get key insights on structuring a smooth transition —clear, practical, and made specifically for business owners. Written by Chris Cooper, WACEO Steering Committee member and Director of the oldest employee ownership state center. By signing up, you'll also receive occasional updates on employee ownership and business succession strategies.
Employee ownership isn’t new, but it’s not (yet) the norm. We’re here to show you how it works and provide answers to your questions.
As a business owner, you add value to your business when you have an employee leadership team equipped to run it. We recommend thinking about employee ownership and business succession early so that you can prepare your core management team (if not already in place) and provide them with training in key areas well before you consider retirement. One advantage of employee ownership is that the company can undergo a smoother transition if the team is well prepared. Current managers can continue to work at the company after the sale, and as the owner, you have the flexibility to stay on and assist with the transition and ongoing operations for as long as you'd like.
Many employees may not be familiar with shared ownership, which involves a broad group rather than a single buyer. No individual is expected to purchase the business alone. Educating employees about the benefits and structure of employee ownership helps them make informed decisions. The Center provides guidance to employees to support this aspect of the transition.
Employees aren’t expected to provide the full purchase price upfront. In most cases, workers pay nothing to be a part of these models or contribute a small equity buy-in while the remainder is financed through a loan.
Business owners selling to employees still receive fair market value. Getting a professional valuation is a great first step to ensuring a competitive sale price. If you have other potential buyers, exploring all options can help determine the best fit for your goals.
Transitioning any business takes effort, but employee ownership is comparable in both timeline and cost to other succession plans, and the Center is here and available to help! We support both business owners and potential worker-owners through the transition, offering advice on next steps and answering questions along the way.
Asset ownership, including employee
ownership of a business, is the most
powerful tool for securing financial
stability and growing household wealth.
