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How Employee Ownership Drives Value and Loyalty
Join our 250K+ subscribers
Join our 250K+ subscribers
Subscribe24 JUL 2025 / EXPERT INSIGHTS
Companies across industries are increasingly considering employee equity models, driven by the potential for increased loyalty, creativity and profitability. Three popular models in the U.S. include Employee Stock Ownership Plans (ESOPs), worker cooperatives (co-ops), and Employee Ownership Trusts (EOTs), all of which align employees' interests with the company's success, improve productivity, foster innovation, and reduce turnover, potentially leading to higher company valuations.
When employees have skin in the game, loyalty sticks, creativity spikes, and the bottom line gets a healthy workout. Curious how handing your team a slice of the pie can boost valuation and keep talent from bolting? From Silicon Valley tech startups to family-owned factories in Ohio, companies everywhere are eyeing employee equity. The topic is hotter than a Fourth of July grill, and for good reason: Ownership turns disengaged staff into profit-seeking co-owners. So, pull up a chair, sharpen your pencil, and let’s dive in.
Employee ownership means workers get a stake in the business. That shared stake lines up everyone’s interests with the company’s success. As Mark Twain quipped, “The secret of getting ahead is getting started,” and for CPAs, CFOs, and advisors, mastering this starter strategy can turn future profits into a slam dunk. There are three kinds of employee ownership models in the U.S.: Employee Stock Ownership Plans (ESOPs), worker cooperatives (known as co-ops), and Employee Ownership Trusts (EOTs).
When employees own a stake in the company, productivity increases, innovation flourishes, and turnover decreases, especially in tight talent markets. Fun fact: According to the National Center for Employee Ownership, ESOP companies grew roughly 6 percent faster than peers in 2024. Lower recruiting and training costs (plus retained institutional know-how) translate into higher earnings multiples, which is a fancy way of saying the valuation gets a sizable lift.
As you’re guiding business owners in their exit planning, show them all the possibilities available to them, including employee ownership. By pursuing EO, business owners can retain their employees, secure their legacy, get fair market value for their business, and keep their business rooted in the community. You’ll strengthen your client relationships and develop a competitive edge for your business by specializing in ESOP feasibility studies, bringing in more business for your practice.
Employee ownership is more than a passing trend: Think fatter profits and rock-solid retention. For CPAs and financial advisors, understanding the nuances of this model is key to providing clients with strategic advice that supports sustainable business growth. Start your journey toward becoming a trusted advisor guru in the growing field of employee ownership today. The next move is yours—take the lead. Learn More and Earn Valuable Continuing Education Credits. Stay sharp on tax and policy updates. Subscribe to the MYCPE ONE Insights newsletter today.
Until next time…
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