ABOUT EMPLOYEE OWNERSHIP (EO)

WHAT does the acronym "ESOP" mean in canada?

While our neighbours to the south have extensive legislation that lays out what an ESOP is and how it can be created, Canada has not had such legislation in the past. "ESOP" has been used in Canada to stand for "Employee Share Ownership Plan".

We have now transitioned to the use of a more broad term; "Employee Ownership" or "EO", and have identified the different models that could fall under this term.

In 2024, the government of Canada passed legislation to enable and encourage "Employee Ownership Trusts" and it is expected this form of employee ownership will become the dominant form in Canada in the years to come.  

Read more about EOTs

Service Providers

ARE THERE DIFFERENT ways to achieve employee ownership (EO)?

The various ways a company might create an employee ownership plan can be broken down as follows. Ultimately the right plan and specific structure for each company will be different, based on the goals the plan is meant to achieve.

Employee Ownership Trusts (EOTs) - provide business owners with an additional option to consider when succession planning for their business to facilitate employees becoming owners of the business (https://employee-ownership.ca/resources)

Equity share ownership plans (ESOPs) - employees purchase (or acquire) and own shares

Stock option plans – employees have the right to purchase shares in the future

Phantom plans (such as Restricted Stock Units - RSUs, Share Appreciation Rights - SARs, and Deferred Stock Units - DSUs) - many of the benefits of stock ownership without actually giving any company stock 

Co-operative ownership – employees come together to buy 100% ownership of a company and each member has a vote. Co-operatives are not this association's specialty, but we have partnered with organization(s) that have the knowledge. Please visit https://canada.coop/en/

ARE THERE ANY GOVERNMENT PROGRAMS SUPPORTING CANADIAN EMPLOYEE SHARE OWNERSHIP? 



Here are the programs we are aware of at the moment. This list may not include all programs out there. 

BRITISH COLUMBIA EMPLOYEE SHARE OWNERSHIP PROGRAM

YUKON INVESTMENT TAX CREDIT

EMPLOYEE OWNERSHIP TRUSTS (EOTs)

Employee ownership QUESTIONS AND ANSWERS FROM THE EXPERTS

EOC Academy Hub to find answers to more detailed Employee Ownership questions regarding Employee Participation, Tax, Legal, and, Valuation. 

WHAT ARE THE BENEFITS?

There are more than 40 years of research to show that Employee ownership plans improve a number of business outcomes. To view the most recent research, visit our
Research Page

WHICH CANADIAN COMPANIES HAVE EMPLOYEE OWNERSHIP PLANS?

ESOPs are found across Canada, from small and medium-sized privately owned businesses to large publicly-traded firms. 

Some of Canada's most admired companies have ESOPS, including Friesens, EllisDon, PCL Construction, and Spartan Controls. 

We are always adding to our list of Canadian companies that have some percentage of employee-ownership. If you are Canadian employee-owned company, we'd love to hear from you and hear your story. Please let us know Contact Us

The ESOP Association (U.S.)

Dedicated to education, The ESOP Association https://esopassociation.org attracts more than 23,000 people annually to its 19 chapter and five national meetings—including the Employee Owned Conference in Las Vegas, NV, which is the largest ESOP event in the world.

The ESOP Association's mission is to educate about and advocate for employee ownership with an emphasis on ESOPs.

The ESOP Association envisions an America where employee ownership is widely recognized as a catalyst for economic prosperity, where the great majority of employees own stock in the companies where they work, and where employee ownership enables employees to share in the wealth they help create. And we look for our nation to become for all the world an example of prosperity with justice through employee ownership.

The Employee Ownership Association (EOA) – United Kingdom

The EOA (https://employeeownership.co.uk/) is a not for profit and politically independent organization that works in close partnership with its members to champion, promote and provide insight into the business case for employee ownership. Members benefit from unique learning, networking, and trading opportunities across the network of diverse companies of all sizes and sectors.

Institute for Economic Democracy - IED

The Institute for Economic Democracy - IED (https://ied.si/en/) is based in Slovenia and is introducing best practices in employee co-ownership and workplace participation across Europe with the aim of strengthening the economy, promoting sustainable development and supporting ownership models that reward work and ideas.

Employee Ownership Australia (EOA)

EOA (https://employeeownership.com.au/) is an independent not-for-profit organization funded entirely by its members. EOA’s mission is to promote awareness of the transformative power of employee ownership and to advocate for change at a legislative level so it becomes feasible for more businesses to implement employee ownership.