An employee-owned business is one where the employees, rather than external shareholders, hold the majority of the shares – either directly or through an Employee Ownership Trust which buys the business on behalf of the employees. There is no one model of employee ownership. The structure can be shaped to fit with the company and the aspirations of the owner.
Employee ownership is a succession planning option that allows a business owner to exit their business at their own pace, safeguard jobs and achieve a fair price for their company. It has also been shown to better engage, reward and attract staff.