Future Now 007 — the Future of Employee Ownership with Alison Lingane
Jul 20, 2023
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Marina Gorbis interviews Alison Lingane, co-founder of Project Equity, discussing the benefits of employee ownership. They explore different forms of ownership, transitioning business ownership to a diverse base, and the need to promote access to assets and wealth building. They also highlight the impact of employee ownership on business education and efforts promoting equity and normalization of employee ownership.
Employee ownership can address wealth and income inequalities and empower workers to have control over their economic future.
There are three main forms of employee ownership: worker-owned cooperatives, employee stock ownership plans (ESOPs), and employee ownership trusts (EOTs).
Efforts are underway to increase awareness and understanding of employee ownership among business schools, foundations, and public institutions.
Deep dives
Project Equity's Mission and Goals
Project Equity is a non-profit organization working towards a future where businesses and communities understand and embrace the benefits of the employee ownership model. Their mission is to create a shift in the economy to ensure quality jobs and more equitable business practices. They aim to increase awareness about employee ownership and make it the preferred business model.
The Benefits of Employee Ownership
Employee ownership is a highly underutilized business model with tremendous benefits. It provides workers with quality jobs, better pay, and improved benefits. Employee-owned businesses are stronger and more resilient, with faster growth and higher profits. They prioritize the well-being of employees and make business decisions that benefit the workers and the larger community. Employee ownership can address wealth and income inequalities and empower workers to have control over their economic future.
Different Forms of Employee Ownership
There are three main forms of employee ownership: worker-owned cooperatives, employee stock ownership plans (ESOPs), and employee ownership trusts (EOTs). Worker-owned cooperatives are businesses owned and governed by the workers themselves. ESOPs are retirement plans in which shares of a company are held in a trust on behalf of the employees. EOTs utilize a perpetual purpose trust to own company shares on behalf of the employees.
Financing Employee Ownership Transitions
Employee ownership transitions involve the business taking out a loan to facilitate the purchase of shares from the selling owner. The workers pay back the loan using the profits generated by their work. This model allows employees to become owners without needing significant capital upfront. While traditional banks may be hesitant to provide loans for employee ownership, there are loan funds and community development financial institutions dedicated to supporting these transitions.
Changing the Narrative and Expanding Education
There is a need to change the narrative around employee ownership and expand education on this topic. Many business schools and curricula lack awareness and case studies on employee ownership. Efforts are underway to increase awareness and understanding of employee ownership among business schools, foundations, and public institutions. Additionally, philanthropy and public banks can play a role in supporting and financing employee ownership initiatives.
IFTF executive director Marina Gorbis talks with Alison Lingane, co-founder of Project Equity, a nonprofit working toward a future where employee ownership is a highly utilized business model that promotes equitable enterprise, maintains thriving local economies, and creates quality jobs that help workers advance their goals and increase their wealth.
Mentioned in this episode:
* Employee Ownership Equals. (n.d.). Retrieved July 20, 2023, from https://employeeownershipequals.org/
* Project Equity. (n.d.). The Case for Employee Ownership. Retrieved July 20, 2023, from https://project-equity.org/about-us/publications/the-case-for-employee-ownership/
* Ownership Works. (n.d.). Retrieved July 20, 2023, from https://ownershipworks.org/
* Ownership America. (n.d.). Retrieved July 20, 2023, from https://ownershipamerica.org/
* The Kendeda Fund. (n.d.). Retrieved July 20, 2023, from https://kendedafund.org/
* Living Cities. (n.d.). Retrieved July 20, 2023, from https://livingcities.org/
* Beyster Institute at the Rady School of Management, UCSD. (n.d.). Retrieved July 20, 2023, from https://rady.ucsd.edu/why/centers/beyster/index.html
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