Employee Ownership Trusts: A Sustainable Path to Shared Prosperity and Business Legacy Preservation

An Employee Ownership Trust (EOT) is a business structure in which a trust holds a controlling interest in a company on behalf of its employees. This model ensures long-term employee benefit and fosters a culture of shared success. EOTs provide a sustainable solution for business succession, preserving the company’s legacy while empowering employees as stakeholders. By aligning employee interests with the company’s performance, EOTs promote stability, engagement, and long-term growth. EOTs are often appropriate for smaller businesses. Unfortunately, they do not currently enjoy special tax advantages.