An Employee Ownership Trust (EOT) is a powerful way for business owners to protect their company’s mission, give employees a meaningful stake in the enterprise, and preserve their legacy. In this model, a trust holds a controlling interest, or even 100%, of the company on behalf of all employees.

The result: workers have a voice in the company’s direction, share in its financial success,

and benefit from long-term job stability.

Unlike other forms of employee ownership, EOTs do not require employees to personally invest or buy shares. Instead, the trust becomes the long-term steward of the business, operating for the benefit of employees across generations. This model is especially well-suited for founders who want to ensure their business remains independent, purpose-driven, and rooted in community values.

Popularized in the U.K. and now growing in the U.S., EOTs are often structured as Perpetual Purpose Trusts—legal entities designed to hold businesses in trust indefinitely. While they don’t offer the same tax benefits as Employee Stock Ownership Plans (ESOPs), EOTs come with significantly lower setup and administrative costs. They also offer more flexibility in governance and succession planning.

For mission-driven companies looking for a low-barrier, values-aligned path to employee ownership, EOTs offer a compelling alternative. They provide a stable structure for shared ownership and long-term resilience, without putting financial pressure on employees.