Gustavo Bernal Torres
The Case for Investing in Employee Ownership
Transitioning businesses to employee ownership has the potential to significantly reduce the overall wealth gap as well as the racial equity gap. But it will take capital investment to scale.
An inspiring example of what’s possible is Taylor Guitars, a manufacturer with $120 million in revenue, which recently transitioned to 100-percent employee ownership. The firm’s 1,200 workers in Southern California and Mexico will now benefit from the value of ownership shares via an Employee Stock Ownership Plan (ESOP).
The financing partner for this transition was the $100 billion Healthcare of Ontario Pension Plan (HOOPP). The pension fund was brought into the deal by Social Capital Partners.