Exploring Employee Ownership Trusts (EOT) and the advantages and disadvantages for a company and its employees.
SpecFinish Editor David Crowson spoke to three FIS members, Galaxy Insulation and Drylining, Paramount and Claremont Group Interiors who opted to establish an Employee Ownership Trust (EOT). This enables their employees to become owners of their respective companies. They tell us about their journeys, spanning their decision-making phase to the actual implementation of the EOT.
According to the Employee Ownership Association (EOA)1, 2022 was a record year for the growth of Employee Ownership Trusts. 332 new companies became employee-owned during 2022, with the number of EOTs standing at more than 1,400 in June 2023 which is an increase of 37 percent in 12 months. According to the EOA’s stats, 90 percent of companies that are currently employee-owned moved to this ownership model following EOTs being enshrined in legislation.
Continue reading to find out why each organisation decided to implement an EOT in their business.
