Shared Ownership at Boulder Startup Week
At this year’s Boulder Startup Week, I had the privilege of moderating a panel titled “The Power of Shared Ownership: How Entrepreneurs Can Benefit from Employee Ownership in Colorado.” We brought together seasoned experts and practitioners to unpack what employee ownership really means, how startups can explore this model, and what it takes to build companies that are both equitable and enduring.
The panel included:
Jason Wiener, Principal | Attorney, Jason Wiener, PC
Allie Clark, Partner, Foley Hoag LLP
Ashley Ortiz, Deputy Director, Rocky Mountain Employee Ownership Center
David Henry, Co-Owner // Senior Director of Business Development, Namaste Solar
Matthew Licina, Technical Content Manager, National Center for Employee Ownership
The session covered a wide range of insights—from technical structures to the emotional and cultural dynamics of employee-owned businesses. Below is a summary of the session. You can find a full transcript here.
What is Employee Ownership?
At its core, employee ownership provides workers access to the financial benefits of the businesses they help build.
“Employee ownership is a business model where employees have a financial stake in the business.” — David Henry
But financial participation is just the beginning. As Jason Wiener explained, true ownership goes much deeper than finances.
“Ownership is really about shared engagement, shared decision-making, shared risk, and reward, and ultimately, it's about aligning the incentives of the organization with the people doing the work and creating value. It's not only about sharing the benefits, the upside, it's about sharing the responsibilities and accountabilities of ownership.”
This model is only successful when the underlying business is strong.
“Beneath it all is a functional, operational business entity that has a product or service that is in demand and has sustainable financial flows.” — Jason Wiener
And while the path to employee ownership can start at a company’s founding, it can also be achieved through a transition later in the life of a business.
“To put it simply, what we like about employee ownership is it means folks have skin in the game.” — David Henry
How Can Startups Explore This Path?
For entrepreneurs just getting started, the idea of designing an employee-owned company can feel overwhelming. Our panelists encouraged founders to keep things simple in the early stages.
“Don’t over-complicate things in the startup stage, really focus on your business and building a business that works great.” — Allie Clark
“Early on, I suggest making as few complex tweaks to the legal structure of the business as possible.” — Jason Wiener
Instead of jumping straight to an ESOP or a cooperative model, startups can begin by implementing foundational elements of employee ownership: transparent governance, employee input in decision-making, and incentive alignment through stock options or profit sharing.
“You should be constantly asking yourself questions about what type of company you want to build, how much governance and employee engagement you want to have… and that may require involving the right advisors or resources from a number of our organizations or others to help you ask the right questions.” — Allie Clark
What Are the Structures of Employee Ownership?
There’s no one-size-fits-all model. Some of the most common structures include:
Employee Stock Ownership Plans (ESOPs)
Worker Cooperatives
Employee Ownership Trusts (EOTs)
Alternative Equity Structures (AES) (such as phantom stock or restricted stock units)
The right structure depends on the business’s stage, goals, capitalization, and leadership capacity.
How Do You Know If It’s the Right Fit?
Before jumping into the legal or financial logistics, founders should conduct a self-assessment and get crystal clear on their goals.
“There are a variety of dimensions to consider when thinking about that pathway… basic succession and M&A planning, looking at the tax attributes of the company, goals and objectives of the selling owners, the engagement organizational capacity of the company… are the company's finances in order, do they have adequate books and records and tax history?” — Jason Wiener
Allie Clark encouraged business owners to ask employees what they want. “What do your employees want?”
And if you're not comfortable with transparency or shared power, this model may not be right for you.
“If you are not comfortable with really open-book management, pulling back the curtain and letting everyone see everything and letting people really take an ownership and decision-making process forward, it is not right for you.” — Allie Clark
What Are the Benefits?
The benefits of employee ownership are well-documented and powerful.
“One of the most obvious ones is the wealth sharing and the ability for people to benefit more fairly from the work that they are doing.” — Ashley Ortiz
“When you think of New Belgium Brewing, it was an ESOP that had over 400 owners at the time it sold. It made millionaires and six-figure wealth nest eggs for hundreds of employees who have gone on to build really cool companies and do really amazing things and bring that lineage to all of the future work.” — Jason Wiener
Beyond individual wealth-building, employee-owned businesses contribute to stronger local economies and more resilient companies.
“Employee ownership, I came to find, is the only business model that I've seen that both solves the macro issues of things like economic inequality with impacts like we saw at New Belgium, but then it also improves, it can improve business performance.” — Andrea Steffes-Tuttle
“When we look at the future of a business, what a PE exit looks like versus a non-PE exit… there's a lot of research out of NCEO that shows that these employee-owned firms… are actually more productive and profitable, and it could be used as a way to attract investment.” — Matt Licina
The Human Side: Messiness and Reward
While the benefits are compelling, employee ownership also comes with complexity, especially around governance and communication.
“You typically have a lot higher engagement. People have care, especially for your vision… but it also has a shadow side… There are certainly still some politics that happen… and it's really hard to make sure that the people who are less likely to speak up get heard… That’s sort of the shadow side, that a worker cooperative does have some messiness, but I prefer that messiness over what I would probably experience if I were in a top-down corporate world.” — David Henry
Still, that messiness often leads to stronger execution and deeper alignment.
“Once we finally get to that decision, the execution of that idea happens much more quickly… We found that having your voice heard is much more important than getting your way, but it's also challenging not to inflate having your voice heard and getting your way…
I think it’s a wonderful model. It’s not for everybody. It’s like Jerry Garcia once said about the Grateful Dead. We’re like black licorice. People who like black licorice love black licorice.” — David Henry
Where to Start?
If you’re considering employee ownership—now or in the future—start by reflecting on your values, your goals for the company, and your long-term vision.
Ask yourself:
What are you looking to do with your business?
What kind of exit or succession plan do you envision?
What kind of culture do you want to build?
Are you open to sharing decision-making and financial transparency?
As Allie Clark put it, you don’t need to do it all at once.
“You can have a roadmap that builds in over time some of these principles… Profit sharing, even just having delegated decision-making… building those things in during the life of your company, until you really think you are ready for a transition.”
How can businesses access support through the state or national organizations?
Ashley Ortiz and Matt Licina discussed the resources available to businesses to support the adoption of a shared ownership structure.
Colorado is currently a national leader in supporting employee ownership, offering some of the most robust state-level incentives in the country. Businesses can access up to $150,000 in tax credits to offset the costs of converting to employee ownership through the Colorado Employee Ownership Office at OEDIT (Office of Economic Development and International Trade). A new bill will extend these credits for 10 more years and introduce ongoing annual support for businesses that have already converted.
Entrepreneurs can also connect with local organizations like the Rocky Mountain Employee Ownership Center and the Center for Community Wealth Building for hands-on guidance, resources, and community support throughout the transition process.
Matt also mentioned that his organization, the National Center for Employee Ownership, is offering a free 6-month membership that will allow businesses to access expert resources and a peer network.
Final Thoughts
Employee ownership is not just a legal structure—it’s a critical choice about how we build and grow our businesses. It asks us to rethink power, equity, and wealth creation in fundamental ways.
If you’re an entrepreneur or business leader in Colorado, there’s a growing ecosystem here to support you on this path. As our panelists made clear, the journey to shared ownership is not always easy, but it’s one of the most powerful investments you can make in your people, your community, and your legacy.
Resources
Colorado-specific
One-hour free consultation to discuss if Employee Ownership is right for your business (can also email ashley@rmeoc.org)
Introduction to EO, information about tax credits, etc., from the Colorado Employee Ownership Office at OEDIT
National