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

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

  • 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.

Gradual Ownership Transitions

  • Direct EO does not require a single large sale event, but rather 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

  • Stock purchase rules 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 many cases, reducing financial strain.

Flexibility and Benefits for Employees

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

  • Employees can 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 can offer 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 real 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?