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What is an Employee Ownership Trust (EOT)? - The Grid Answers

What is an Employee Ownership Trust (EOT)?

Published on 2026-11-03 | Last edited on 2026-11-03

Grid Insight

Short Answer

An Employee Ownership Trust (EOT) is a trust that owns all or part of a company for its employees’ benefit. Employees don’t buy shares, and they usually receive a share of the profits. The owner is usually paid over time, from the company’s profits.

#Steward Ownership

#Broad-based Employee Ownership

#Perpetual Purpose Trust

Ask Zolid AI

What advice do business owners who sold to third parties have to offer me?What are the different types of employee ownership?Are the 3 business succession options (i.e., employee ownership, strategic buyer, or financial buyer) mutually exclusive?How does an Employee Ownership Trust compare to an ESOP or a worker cooperative?How much does an Employee Ownership Trust cost to set up and maintain?How is an Employee Ownership Trust governed?Are there tax benefits to an Employee Ownership Trust, and what does the owner owe on the sale?How are Employee Ownership Trust trustees selected, and do they have a fiduciary duty?What size and type of company is a good fit for an Employee Ownership Trust?

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