Sustaining Ownership: The Promise of Employee Ownership Trusts
About this event
Employee ownership can take many forms: employee stock ownership plans, worker cooperatives, broad-based equity sharing plans, and more. A less common approach in the US, but one that is gaining attention, is employee ownership trusts (EOTs). While research has demonstrated the benefits of employee ownership for business performance, business resilience, and job quality, the growth in the number of employee-owners has plateaued. The leveling off is not because fewer businesses are choosing employee ownership as a succession plan, but rather due to valuable employee-owned companies being sold. EOTs, a type of perpetual purpose trust, have the potential to sustain employee ownership over time, often while serving other purposes.
EOTs can provide profit-sharing, support democratic workplace practices, and, like other forms of employee ownership, are associated with improved productivity. While uncommon in the US, EOTs are the primary form of employee ownership in the UK. The model’s successes have been such that the government of Canada recently took steps to facilitate EOT transitions, and there are indications that the approach is gaining ground in the US, as well. Join the Aspen Institute Economic Opportunities Program for “Sustaining Ownership: The Promise of Employee Ownership Trusts,” the third and final conversation in our series, “Employee Ownership’s Moment: Discussions on Advancing Policy and Practice.” Our expert panel will discuss the current state of research into trusts, the benefits EOTs provide, how EOTs compare to other forms of employee ownership, the experiences of business owners and workers in trusts, and what the future holds for this model in the US.
Opening Remarks
Mark Hand
Assistant Professor of Political Science, University of Texas-Arlington
Mark Hand is an Assistant Professor in the Political Science department at the University of Texas at Arlington, where he researches workplace democracy in employee owned firms, temporary organizations (including political campaigns), and entrepreneurship in the policymaking process. He previously taught at Oxford University’s Saïd Business School and the RGK Center for Philanthropy and Community Service at UT-Austin. He was a 2022-2023 Kelso Fellow at the Rutgers School of Management and Labor Relations and the recipient of a Schmidt Futures grant to explore purpose trust ownership.
Mark is also a senior consultant at Liminal Advisors, which helps early stage companies and investment funds more effectively build and manage high-caliber teams. He has made, managed, and supported investments in over 40 ventures through First Light Ventures, the Oxford Seed Fund, the Skoll Centre for Social Entrepreneurship, and UnLtd USA. He spent his early career in community development, including co-founding Manna Project International’s community development site outside of Quito, Ecuador.
Panelists
Leah Hamilton
Manager of Culture and Organizational Effectiveness, Optimax Systems
Leah Hamilton wholeheartedly believes in community building, collaboration, and courageously breaking down barriers to success. Formerly a public library director working to bridge the technical skills gap by partnering industry, educators, and community organizations in innovative ways, Leah joined Optimax Systems, a precision optics manufacturer in Ontario, New York, in 2019.
As the manager of culture and organizational effectiveness, Leah is passionate about assessing and incorporating employee experience, practices, and behaviors into cultural and organizational development initiatives. She strives to build employee engagement through community-minded practices and create transformational leadership and learning strategies that support individual, team, and organizational success.
Chris Michael
Founder and Managing Director, EOT Advisors
Chris Michael is a financial advisor, economist, author, founder of EOT Advisors, and professor at Rutgers University. He founded the first financial services firm in the country dedicated to assisting business owners sell their company to an Employee Ownership Trust (EOT). Chris is responsible for developing the EOT as a new financial and legal mechanism in the United States and has published articles introducing the concept in leading peer-reviewed journals, including Tax Notes and Probate & Property.
He is also a professor at Rutgers University, where he is a director of the Institute for the Study of Employee Ownership and Profit Sharing. Chris holds a BA from Columbia University and a JD/PhD from the City University of New York. His doctoral dissertation, the result of a decade researching the economics and history of employee ownership, is forthcoming as a book.
Melinda Paras
Founder and Former Owner, Paras and Associates
Melinda Paras was the founder and owner of Paras and Associates (PAA), a California based corporation, leading the implementation of new language access solutions using video call center technologies. Paras sold the company to its employees in an Employee Owned Trust in 2021. The Paras and Associates team manages the Health Care Interpreter Network (HCIN), a cooperative of more than 50 hospitals and clinics sharing interpreter services. Ms. Paras is a former President of the Alameda County Medical Center Board of Trustees and a former San Francisco Health Commissioner.
Rick Plympton
CEO, Optimax Systems
Rick Plympton is the CEO of Optimax, a precision optics manufacturer in Ontario, NY. He has provided leadership and vision since 1995 to help grow Optimax from a small start-up to America’s largest precision optics manufacturer. He is actively involved in supporting regional workforce development and the optics industry.
He also serves as Trustee (Optimax Perpetual Purpose Trust), Director (Canandaigua National Bank), Director, (Optica Foundation), Treasurer, (OEOSC), Director, (AmeriCOM), Executive Committee, (Business Leaders United), Member, (New York State Workforce Investment Board). Other recent honors and participation include: 2018 Aspen Institute Fellowship for Job Quality; 2018 inducted into the Rochester Business Hall of Fame.
Rick holds degrees in business administration, computer science, and engineering science from Finger Lakes Community College. He furthered his education at the University of Rochester with a Bachelor of Science.
Moderator
Kristin Toussaint
Staff Editor, Impact Section, Fast Company
Kristin Toussaint is a staff editor for the Impact section at Fast Company, where she covers climate change, labor, shareholder capitalism, and all sorts of innovations meant to improve the world.
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