Using an Employee Ownership Trust for Business Transition
New intro-level reading from the National Center for Employee Ownership
In brief: The NCEO just published what I think is the first-ever physical book on employee ownership trusts (EOTs). And it’s great.
The book cover what EOTs are and how they compare to employee stock ownership plans (ESOPs); how they’re financed, structured, and governed; and how to include other forms of equity in them. It includes case studies on multiple EOTs.
Why it matters: Corey Rosen and the National Center for Employee Ownership he founded have historically focused on ESOPs. To have Rosen and NCEO put this level of energy and resource into a book on EOTs is a strong signal.
The book includes chapters from some of the folks deep in the trenches converting companies to EOTs, including friends and partners of ours from EOT Advisors, Project Equity, Broughton Consulting.
NCEO is also putting together a survey of EOTs and PPTs (perpetual purpose trusts), and I hear there’s already a second edition of the book in the works.
Read on with a few other starter resources on purpose trust ownership.
Purpose Foundation and RSF Social Finance published a report in 2019 on the state of alternative ownership in the United States.
Common Trust published an e-book in 2022 exiting to employees.
In 2023 Transform Finance published their report on alternative ownership enterprises.