Employee ownership means that all or a significant proportion of ownership is held by or on behalf all employees either directly or indirectly.

• Direct ownership means that employees personally own shares within the company enabling employees to have an equity stake in the business they work for and potentially benefitting from capital growth.
• Indirect ownership means that shares are held indirectly on behalf of the employees, via an Employee Ownership Trust (EOT).  Employee Ownership Trusts (EOT) are now the most common way that businesses move into employee ownership in the UK. They are simple, easy to administer, and can confer  benefits and responsibilities of ownership to a broader group of employees without the need for them to pay for this personally.

There is also the flexibility to create a hybrid model of ownership where the majority of shares are held via an EOT with a combination of direct ownership whether that be a retained shareholding, direct employee shareholding and / or an external investor.