How do EOTs compare to ESOPs and worker cooperatives?

Employee ownership isn't a single model — it's a family of ownership structures. Employee Ownership Trusts (EOTs), Employee Stock Ownership Plans (ESOPs), and worker cooperatives are three of the most common approaches, but differ in who owns the business, how employees participate, and what ownership is designed to achieve.

An Employee Ownership Trust (EOT) is built around long-term stewardship. The trust holds ownership for the benefit of current and future employees while supporting the ongoing financial health of the business. Owners can transition some or all of the company while preserving independence, continuity, and employee participation. For many companies, employee ownership becomes an operating model — not simply a succession strategy.

An Employee Stock Ownership Plan (ESOP) is a qualified retirement plan that helps employees build retirement wealth through company ownership. ESOPs tend to be a good fit for companies where retirement benefits are a primary goal.

A worker cooperative emphasizes democratic ownership. Employees own the business directly and typically participate in governance through a one-member, one-vote structure.

Understanding those differences can help you decide which employee ownership path may be right for your business. Our EOT vs. ESOP comparison explores how the two models differ, while our employee ownership models guide explains the broader landscape.