The group met at the Stein Eriksen Lodge in Deer Valley from July 8 to 10, with an agenda headlined: “Employee Ownership Summit: Redefining Independence.” A welcome packet included a letter from Francais, a box of chocolates and a white baseball cap that read, “100% EO / Redefining Independence.”He ended up with 22 firms, all of which met the $3 billion asset threshold, were 100% employee-owned, and were fee-only fiduciaries serving individuals, not institutions. They hailed from 16 states, managing a total ...

Core Idea - The concept of employee ownership is being promoted as a means to enhance worker engagement and retention while allowing employees to build wealth, addressing issues such as high quit rates and low job satisfaction in the workforce [3][4][15]. Employee Ownership Model - Employee ownership is structured to provide workers with stock or options without requiring them to invest out of pocket, aiming to offer a year’s worth of income as a benefit [5][8]. - The model involves placing a block of ownership in a trust, which is liquidated upon a company sale or IPO, allowing employees to receive cash or tradable stock [6][11]. Case Study: Ingersoll Rand - Ingersoll Rand serves as a case study where employee ownership transformed the company culture, increasing stock ownership from 86 senior executives to 20,000 employees, resulting in workers earning approximately $1 billion and reducing the quit rate by 90% [7][19]. Challenges and Transparency - Implementing employee ownership is complex, requiring education on business operations and financial transparency to ensure employees understand their contributions and the value of their ownership [16][12]. - Regular updates on company performance and valuations are provided to employees to maintain transparency and engagement [12][13]. Policy and Future Aspirations - The initiative aims to modernize existing policies like the Employee Stock Ownership Plan (ESOP) to encourage broader participation in employee ownership, with aspirations to expand this model to more companies and workers [20][21]. - There is bipartisan support for the idea of employee ownership, indicating a potential for policy changes that could incentivize companies to adopt this model [19][20].

This story was originally published on Manufacturing Dive. To receive daily news and insights, subscribe to our free daily Manufacturing Dive newsletter. As millions of near-retirement age business owners plan their company’s future, experts say employee ownership plans could help retain and attract more workers for U.S. manufacturing. Common types of employee ownership schemes include employee stock ownership plans, employee ownership trusts and worker cooperatives.  The U.S. has more than 6,500 employee ...