Why Choose Direct Employee Ownership

Direct Employee Ownership (Direct EO) is a flexible, low-cost solution designed to help companies transition ownership in a sustainable, gradual way. It can work seamlessly, whether your company is small and young or sizable and well-established.

Suitable at Any Size or Stage

  • Unlike some other employed ownership alternatives, companies with any number of employees can successfully implement Direct EO.

  • While profitability is preferred, it’s not required in all situations, making it accessible for various business stages.

  • Direct EO is significantly less expensive to set up and maintain compared to other methods and avoids the complexities associated with regulatory governance.

Gradual Ownership Transitions

  • Unlike most employee ownership models that require a single large sale event, Direct EO focuses on a managed, incremental process that can be implemented at a comfortable pace.

  • Owners approaching retirement can sell shares over time, aligning with their retirement and life goals.

  • Employees can buy shares incrementally, making access scalable.

  • This approach ensures a smooth transition to the next generation, keeping the business stable and preserving its legacy.

Built-In Flexibility for Companies

  • Shareholders’ agreements and stock purchase forms can be designed to meet the company’s unique requirements.

  • Tailored programs, including stock bonuses, stock grants, or stock donation programs, allow businesses to reward and empower employees in ways that work for them.

  • No need for bank or owner financing in most cases, reducing financial strain.

Flexibility and Benefits for Employees

  • Employees can become owners immediately, earning a tangible stake in the business.

  • Employees have opportunities for low minimum purchases—deducted from payroll or bought with cash, profit sharing, or bonuses—to make it easily accessible to all.

  • When employees invest their own money, they experience a sense of pride and commitment that transforms them from workers to owners.

  • Ownership offers employees the chance to share in the financial success of the business, option to sell shares to fund major life events, and voting rights at shareholder meetings.

Create a Resilient and Engaged Workforce

With Direct EO, businesses can ensure a sustainable, flexible ownership transition while empowering employees to think and act like true owners with a strong connection to the company—helping everyone succeed together.

Explore with Tandem

As a nonprofit, Tandem is designed to help you discover employee engagement, profit sharing, and employee ownership options. The team at Tandem walks alongside you to evaluate your needs, outline a potential path forward, and make the transition smooth. Ready to explore your options?