Types of Employee Ownership

EO is flexible! Each business can tailor the format of their EO to their unique requirements. 

There are opportunities to provide employees a meaningful stake and a say in their workplace in any of these formats. And the type of EO used by a business can be tailored to its unique situation and needs. 

The three main types of EO are:

Direct Ownership

Employees personally hold shares in the company. Each individual member of staff will be a direct shareholder. Often, the company might gift shares to employees or offer them the opportunity to buy shares after working there for a certain period of time.  

 

 

Indirect Ownership

Company shares are held on behalf of employees in a permanent or long-term trust, or sometimes a pension fund. Employee Ownership Trusts (EOTs) are a form of indirect ownership and are the most popular form of EO in the UK. Some companies also use an Employee Business Trust (EBT), which predates EOT legislation. 

Combined (Hybrid) Ownership

Companies can use a combination of both the above forms of EO according to their needs. A portion of the company might also be owned by others, such as a founder-owner or external investors. 

 

Discover More

If you're interested in finding out more about any (or all) of the EO models available, drop us a line. We're always happy to chat employee ownership.

We also have great events on becoming EO that are filled with fascinating and first hand accounts of the process. Keep an eye on our events page.

If you're an Affiliate member looking to find out more, we can connect you with a range of already established EO businesses for further insight, advice, and guidance.