Employee-Owned companies are companies that shared considerable and broad-based ownership stake with their employees. In essence, employees typical own at least 30% of the business. Because it is a partnership, the level of motivation and sense of ownership among employees are extremely strong.
There is a very small number of Employee-Owned companies conversely to employee ownership. Even though the structure can be rigid in management with little room for flexibility, it certainly provides some major advantages.
- EOCs are more stable and better managed
- They usually perform better than their peers
- Revenues sharing with employees
- EOCs are better integrated into the community
- Tax benefits